Analysis of Impact of Union Budget 2012-13 On Income Tax

Submitted in partial requirement for P.G.D.M Programme Year - 2010 2012 Project Code- IFIM-Academic Project

SUBMITTED BY: Submitted To: Dr Madhumita Chatterjee Swati Kumari

Topic: To understand the evolution and growth of Union Budget in India. To understand the Union Budget with special reference to Income Tax and its

Implications. To Compare between Union Budget 2012 & 2011 with reference its changes in IT Act.
To understand the tools (Investments) used by common man to save IT in India.

To conduct a primary research with a sample of 30 and understand their view of common man on new IT slab and Budget. To bring out the perspective of Political parties in India towards using Budget related changes as Vote Bank Politics . To throw some light on period 2007-2009 in terms of Global recession and its impact on India and the Budget that came afterwards .

Limitations:The topic will be dealing with Union Budget highlights and the comparison will be just on basis of Income tax Slab and sample size will be just of 30 people.

Learning in Internship:We have to advice customers on various financial investments and products so that during the process of investing their hard earned money they dont get cheated or misguided by any companies or agents. The various products are Loan, Insurance (mainly people seek advice on it and this is the area where they are mainly cheated also so its really important to give them good knowledge on it),Mutual Fund, , Stock Market ,Tax Planning, Real Estate, Loan Against Property. We just aware customers of the various important criteria that they should check before making Investments and how they can select best investment for them from various options available in the market ,we do this based on the profile of the coustomer like their personel profile and financial status .

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Union Budget : Meaning of Union Budget A budget is a financial document used to project future income and expenses. The budgeting process may be carried out by individuals or by companies to estimate whether the person/company can continue to operate with its projected income and expenses. The Union Budget of India, referred to as the annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India, presented each year on the last working day of February by the Finance Minister of India in Parliament. The budget has to be passed by the House before it can come into effect on April 1, the start of India's financial year. Former Finance Minister Morarji Desai presented the budget ten times, the most by any. The Union Budget of India for 2012 - 2013 was presented by Pranab Mukherjee, the Finance Minister of India on 16th March 2012, this was the 7th budget of his career . These budgetary proposals would be applicable from 1 April 2012 to 31 March 2013. History of Budget in India India's Budget - India's public finance system follows the British pattern. The Indian constitution establishes the supremacy of the bicameral Parliament--specifically the Lok Sabha (House of the People)--in financial matters. No central government taxes are levied and no government expenditure from public funds disbursed without an act of Parliament, which also scrutinizes and audits all government accounts to ensure that expenditures are legally authorized and properly spent. Proposals for taxation or expenditures, however, may be initiated only within the Council of Ministers--specifically by the minister of finance. The minister of finance is required to submit to Parliament, usually on the last day of February, a financial statement detailing the estimated receipts and expenditures of the central government for the forthcoming fiscal year and a financial review of the current fiscal year. The Lok Sabha has one month to review and modify the government's budget proposals. If by April 1, the beginning of the fiscal year, the parliamentary discussion of the budget has not been completed, the budget as proposed by the minister of finance goes into effect, subject to retroactive modifications after the parliamentary review. On completion of its budget discussions, the Lok Sabha passes the annual appropriations act, authorizing the executive to spend money, and the finance act, authorizing the executive to impose and collect taxes. Supplemental requests for funds are presented during the course of the fiscal year to cover emergencies, such as war or other catastrophes. The bills are forwarded to the Rajya Sabha (Council of States--the upper house of Parliament) for comment. The Lok Sabha, however, is not bound by the comments, and the Rajya Sabha cannot delay passage of money bills. When signed by the president, the bills become law. The Lok Sabha cannot increase the request for funds submitted by the executive, nor can it authorize new expenditures. Taxes passed by Parliament may be retroactive.

India's first Finance Minister Sir R.K. Shanmugham Chetty, presented the first Finance Budget of independent India on November 26, 1947. Since then, 28 different Union Finance Ministers have been presenting the budget year after year. Initially, major attention was paid towards the agriculture sector but as the economy evolved, the focus shifted from agriculture to other sectors like industrial, financial etc. During the early the fifties, Indian budget highlights revolved around the public sector and public finance and hence, back then - taxation, inflation, public savings etc were much talked about topics. This trend continued till the finance budget 1985-86. The change in the approach began with Mr. Manmohan Singh who served as the Union Finance Minister under the leadership of Mr. P.V. Narsimha Rao. Mr. Singh was instrumental in head starting the new phase of economic liberalization. He reduced the control of Government over public sector units through disinvestment. The liberalization process which he started years back is still followed and is seen in interim budget and Indian budget announcements every year. This year also live union budget 2011 will be announced by Pranab Mukherjee.