Rajiv Gandhi Equity Savings Scheme Launched

A new scheme called Rajiv Gandhi Equity Savings scheme is proposed in the Union Budget 2012-13 to encourage flow of saving in financial instruments and improve the depths of domestic capital market. 

Performance linked incentive for central employees soon

Government on Thursday said that it was working on guidelines through inter-departmental consultations to give performance-based incentives to its employees over and above their regular salary. 
"The sixth Central Pay Commission (CPC) has recommended introduction of new performance based pecuniary benefit, over and above the regular salary, for government employees," MoS for department and personnel V Narayanasamy told the Rajya Sabha in a written reply. 

Union Budget 2012-13 Highlights

·         Budget identifies five objectives relating to  growth recovery, private investment, supply bottlenecks, malnutrition and governance matters

·         GDP growth to be 7.6 per cent (+ 0.25 percent) during 2012-13

Budget 2012 : Flash News

Income Tax deduction of 50 per cent on investments of up to Rs 50,000 in savings scheme named after Rajiv Gandhi. 
locking period in Rajiv Gandhi Equity scheme will be 3 years 
1 % rebate in interest rate for Home Loan upto Rs 25 lakh 
Direct Tax Code (DTC) Bill to be enacted at the earliest, says FM 
no change in Corporate Income Tax limit 

Proposal to increase Income Tax Exemption limit to Rs 2.0 Lakh from Rs 1.8 lakh 

Incomes up Rs 5 lakh will now fall in the 10 per cent tax bracket. 

 Income Tax upto 10 Lakh: 20 percent , 30 percent tax for income above 10 lakh

Interest income of up to 10 per cent to be exempted from tax. 

Upper limit raised from Rs 8 lakh to Rs 10 lakh for 20 per cent bracket. 
Tax exemption of up to Rs 5,000 for health insurance for annual preventive health checkup. 
Standard excise duty rate raised from 10 per cent to 12 per cent. 




Watch this blog for complete highlights of he budget, to be published shortly.

EPF interest slashed to 8.25%

Government on Thursday slashed interest rate on deposits in Employees Provident Fund from 9.5 per cent to 8.25 per cent for 2011-12 affecting over 4.7 crore subscribers.

This cut was proposed by the Finance Ministry and a notification was issued by the Labour Ministry, official sources said.

The Employees' Provident Fund Organisation (EPFO) had provided 9.5 per cent interest rate to its subscribers for 2010-11 after it found Rs 1,731 crore surplus in its books of account.