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Main points in finance bill withdraw of excise on jewellery etc

 Finance Minister Mr. Pranab Mukherjee presented finance bill 2012 and he made some amendments in the finance bill 2012 which are as follows.

1- GARR (General anti-avoidance rule) has been deferred for a year and it will be implement in the next financial year April 2013.
2- DTAA (Double tax avoidance agreement) which India has with many countries will not override with GAAR.
3- GARR will impact where such transactions are made with low tax or the countries with which India doesn’t have the DTAA agreement.
4- Investors needn’t to prove the status of their compliance with tax laws. 
5- For private equity funds, the tax rate is reduced 10 per cent from 20 per cent.
6- For PE funds, LTCG tax will be treated as same as FIIs.
7- For unlisted securities, the STT (securities transaction tax) will be levied at 2%.
8- There is an extension of exemption on long term capital gain on sale of unlisted securities in an IPO.
9- In the speech, Mr. Mukherjee has proposed to withdraw the excise duty of 1% on precious metal and jewellery with effect from 17 March 2012.
10- Business which have foreign borrowings need to pay lower withholding tax at the rate of 5%.
11- The finance bill 2012 also withdraws the TDS of 1% on sale of immovable property.
12- In this finance bill, it is also proposed to raise the limit of Tax collection at source (TCS) on cash purchase of jewellery to 5 lakh. Earlier the limit was 2%.
Read full speech of finance bill from here

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