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Finance Bill, 2012 RollBacks – Check if Indian Govt is Weak!!

Rollbacks is the order of the day as at times tough measures are deliberately implemented to withdraw the same at later stage to appease one and all sundry. Check out roll backs to understand the coalition govt difficulties.

The rollbacks as has been undertaken in Finance Bill 2012 which was presented on 16 mar (delay due to elections) are as appended below:

  • Postponed implementation of the general anti-avoidance rules (GAAR) by one year, but offered no concessions to Vodafone involved in tax dispute.
  • Halved the capital gains tax for private equity investors to 10 per cent and relaxed the norms for arrest of persons involved in violation of Customs Act.
  • Withdraw the levy (one per cent excise duty) on all precious metal jewellery, branded or unbranded, with effect from March 17, 2012.
  • Threshold limit for TCS (tax collection at source) on cash purchase of jewellery will be raised to Rs 5 lakh from the present Rs 2 lakh.
  • Threshold limit for cash purchase on bullion will be retained at Rs 2 lakh. Bullion will not include any coin or other article weighing 10 grams or less.
  • Govt withdraws 1% TDS on property sales and make life easier for buyers.

Indian politics which is run on coalition dharma has to appease oppositions as well as the coalition partners to get the govt going and help it complete its full term.

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