Reams have been written about what the Budget means for businessmen. But it also affects many other groups.
Students
Students who are planning to write the GMAT or GRE should be prepared to shell out more from April. Fees on coaching classes are set to rise with the increase in service tax rate.
The peak rate of service tax has been increased to 12 per cent from 10 per cent. On a fee of Rs 50,000 service tax is currently Rs 5,000 (education cess additional), from April this will increase to Rs 6,000.
Students who train in a dance or sports academy may also have to pay a higher fee. Accommodation and canteen service charges at PG hostels may also go up.
But it is not all bad.
The Budget has however offered some relief to the student community and the parents by putting school education and all recognised higher education out of the purview of service tax in 2012-13.
It also proposes to set up a credit guarantee fund to back up education loans. That may make bank loans for education easier to obtain and may reduce their cost as well.
Housewives
Women at home will find finances getting tighter and may have to wrestle with men for more money to mange the household.
The across the board increase in excise duty to 12 per cent from 10 per cent is set to increase the price of household items ranging from processed foods, beauty products and kitchen appliances.
The price of big-ticket appliances such as washing machines, dish-washers, refrigerator and air-conditioners are also to go up.
She may have to continue to take a taxi to drop her kid at school as the two-wheeler she was long eyeing to buy will also cost more now.
Thanks to the higher service tax rate, there will be a higher service fee on phone connections at home; and eating out will cost more.
The cost of holidaying with family may also increase if packaged tours are opted.
It may do good for women to refrain from buying jewellery.
The price of jewellery is set to rise with import duty on gold being increased to 4 per cent. Studded jewellery will also cost more as import duty on polished gem stones has increased. Also, if the purchase value exceeds Rs 2 lakh and you pay for it in cash, you will face an immediate tax of 1 per cent.
Retired people
Senior citizens have reason to cheer. The age for availing benefits of a senior citizen under sections 80D (deduction of up to Rs 20,000 on premium for health policy of parents), 80DDB (deduction of up to Rs 40,000 for medical treatment of parents) has been reduced from 65 years to 60 years.
At 60 years one can also claim ‘to be exempt' in respect of tax deducted at source (TDS) if he is able to furnish information that his total income in the assessment year was below the taxable limit.
The Budget has relieved senior citizens who do not have any income from business or profession from the requirement to pay advance tax.
Salaried Individuals
The tweaks in the tax slabs though minor can help salaried individuals save more.
A person with income of Rs 2 lakh would not be required to pay any tax now; a saving of Rs 2,060. A person with income Rs 10 lakh and above will save Rs 22,660 on the tax front.
You can see more money coming into your savings kitty also from the proposal to exempt interest income from a savings bank account from tax. This is however only for a maximum of up to Rs 10, 000. Taxpayers may however have to forego a portion of the savings made from the above towards increase in service tax rate.
Service charges paid to the stock broker or any other investment agent may increase now.
The service tax on mortality charge of the life insurance policies too will rise. In case of ULIPs (unit-linked investment plan) the tax outgo will increase further given that in the first year of the policy the investment component of the premium will be taxed at 3 per cent now (1.5 per cent earlier).
A commoner however can take solace from the fact that rented residential accommodations, power distribution, public transport through metro rail, bus, meter cabs, railways (other than first class and air-conditioned coach and), school education, entertainment and mortuary services have been put under the negative list of services and have escaped from the tax net.