The budget, which the salaried class was keeping much expectations was an absolute disappointment. The only relief was IT exemption being raised to just Rs 2 lakh. But the hike is very less compared to what the Standing Committee on Finance has recommended. The committee has recommended to the government that individuals earning between Rs 3 and Rs 10 lakh should pay 10% tax, those earning between 10 & 20 lakh pay 20% tax and those earning above Rs 20 lakh should pay 30% tax.
The impact of the budget is that most luxury items, eating out, air travel, leisure activities to cost more. Service tax rates hiked from 10 per cent to 12 per cent. AC, Fridge, large cars, gold diamonds etc. that makes the part of the urban lifestyle is going to be dearer.
Presenting Budget 2012-13, Finance minister Pranab Mukherjee has said that it is time to take hard decisions and reforms. He said the growth of the Indian economy estimated at 6.9 percent during this fiscal year was "disappointing".
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