Union Budget 2011: Recommendations simplified for you

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Direct Tax Recommendations:

1. Exemption limit for general tax payers raised to Rs.1,80,000 from existing Rs.1,60,000.
2. Senior citizen benefits to begin at 60 instead of 65
3. New category of senior citizens for 80 yrs and above, basic exemption limit shall be Rs.5 lakh.

4. Surcharge for companies brought down from 7.5% to 5%.
5. MAT rate raised from 18% to 18.5%
6. Propose to levy MAT on developers of SEZs
7. Foreign unit dividend tax rate cut to 15% for Indian companies
8. Tax sops of Rs.20,000 on infra bonds extended by a year.
9. Direct tax sops to cost exchequer Rs.11,500 crore.
10. FY12 gross tax receipts at Rs.9.32 lakh crore.
 
Indirect Tax Recommendations:

1. Excise duty to be maintained at 10%
2. Service tax rate remains at 10%
3. More services to be brought into service tax net
4. Air-conditioned hospitals with more than 25 beds come under service tax regime.
5. Service Tax on hotel accommodation above Rs.1,500 per day.
6. Life insurance services in area of investment now in service tax.
7. Govt expects to earn Rs.4,000 crore additional revenue from service tax.
8. Peak rate for customs duty remain unchanged.
9. 1% excise duty on 130 new items.
10. Base rate on excise duty raised to 5%.
11. Basic food, fuel exempted from central excise duty.
12. Cut in import duties of raw material for mobile phones.
13. Basic customs duty on Pet Coke and Gypsum to be reduced to 2.5%.
14. 10% excise duty on branded garments.
15. Stainless steel exempted from excise customs duty.
16. Excise tax on Diapers and sanitary napkins reduced from 10 to 1%
17. Duty free imports on spares parts for ships.
18. Duty on hybrid and electric cars, and batteries imported for them, reduced.

General Recommendations:

1. DTC is to be finalised in the year 2011 so that it will be effective w.e.f. April 1, 2012
2. Significant progress on the GST network with the preparations for GST rollout in final stages
3. New Companies Bill to be introduced in current session
3. To introduce Public Debt AMC of India Bill in financial year 2011-12.
4. NRIs shall be allowed to invest in mutual funds. MFs can accept subscription from foreign investors who meet KYC norms.
5. Proposal to move to direct cash subsidy for fertilisers and kerosene.
6. Proposal to raise corpus of rural infra development fund to Rs.18,000 crore. From existing Rs.16,000 crore.
7. Interest subvention on housing loans to be extended by one year. The norms for eligibility also relaxed. 1% interest subvention on home loans up to Rs 15 lakh. Upped priority home loan limit to Rs.25 lakh vs Rs. 20 lakh
8. Ceiling for Infra sector FII for bonds with 5-year residual maturity
9. Proposal to allocate Rs.3,000 crore to NABARD
10. In current year, overall economic growth is expected at 8.6%, agriculture growth at 5.4%, industrial growth at 8.1%, and services growth at 9.3%.
11. Provision of Rs.300 crore. each to be allocated for oil palm production, production of bajra, jowar, ragi, and for fodder development.
12. Rs.2.14 crore to be allocated towards infra development. Tax free bonds of Rs.30,000 crore for enhancement of infra sector.
13. Modified infra debt funds to be created to attract foreign funds for infra development
14. On-going metro projects will be provided financial assistance for speedy execution
15. Investment in fertiliser to be considered as an infrastructure sub-sector
16. Cap infusion of Rs.20,157cr in PSU banks in FY12
17. Bill to be introduced to enable RBI to grant more banking licenses.
18. Investments in Fertiliser sector to get status of investment in infrastructure.
19. Proposal to infuse further capital of Rs.20,157crore in PSU banks in FY 2011-12.
20. To create Rs.100 cr. equity fund for microfinance companies
21. To set up national mission for hybrid, electric vehicles
22. Allocation of Rs.52,057 crore for education sector, increase of 24% over last year.
23. FY12 health sector outlay at Rs.26760cr, up 20%
24. Food security bill to be introduced this year.
25. Allocation of Rs.58,000 crore for social schemes (Bharat Nirman).
26. NREGA wage rates to be indexed to inflation.
27. Rs.1 crore international award to mark Tagore’s 150th birth anniversary.
28. Rashtriya Krishi Vikas Yojana allocation to go up from Rs.6,755 crore to Rs.7,860 crore.
29. Literacy mission to get Rs.21,000 crore as allocation to Sarva shikshan Abhiyan.
30. Easier service tax refunds expected to benefit SEZs
31. Allocation of Rs.8,000 crore for J&K, Grants to N-E states doubled.
32. UID mission confirmed as taken off with 20 lakh aadhaar nos already given. 10 lakh nos to be generated per day from 1st Oct 2011.
33. E-stamping to be rolled out in all states in three years. Only six states have introduced e-stamping so far.
34. CBDT to provide special web facility for salaried persons.
35. Indian rupee symbol will be introduced on keyboards in Unicode in keeping with ‘International Standards’.
36. Non-tax revenue now at Rs.1,25,435 crore. Total tax revenues Rs.664,457 crore for FY 2010-11.
37. Revenue deficit estimated at 1.8% in f.y.2011-12.
38. FY 2010-11 fiscal deficit was at 5.1%. Fiscal deficit estimated for f.y.2011-12 at 4.6%.
39. Plan expenditure pegged at Rs.4.14 lakh crore.

Collated By
CA Sanjay Thampy (ACA, Grad.CWA, DBM)

Kerala IT News

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