New Delhi, February 28 (PTI): A play-safe budget on Monday raised the threshold income tax exemption limit from Rs 1.60 lakh to Rs 1.80 lakh that will leave at least Rs 2000 more in the hands of tax payers across the board and made changes in the service tax that will make air travel, hotel accommodation and drinking in AC restaurants costlier.
Presenting the budget for 2011—12 that will result in a net revenue loss of Rs 200 crore, Finance Minister Pranab Mukherjee imposed an excise duty of one per cent on 130 specified items which will, however, exempt food and fuel.
He also gave some relief to corporates by reducing the current income tax surcharge of 7.5 per cent on domestic companies to five per cent but raised the Minimum Alternate Tax (MAT) from 18 to 18.5 per cent including developers of Special Economic Zones (SEZs) in it.
While leaving the rest of exemption slabs, surcharge and cess on income tax untouched, he reduced the qualifying age of senior citizens from 65 to 60 years, raised their exemption limit from Rs 2.40 lakh to Rs 2.50 lakh. No special benefit was announced for women whose basic exemption limit remains at Rs 1.90 lakh.
Mr. Mukherjee also created a new category of “Very Senior Citizens” of 80 years and above who will be eligible for a higher exemption limit of Rs five lakhs.
Presenting the budget for 2011—12 that will result in a net revenue loss of Rs 200 crore, Finance Minister Pranab Mukherjee imposed an excise duty of one per cent on 130 specified items which will, however, exempt food and fuel.
He also gave some relief to corporates by reducing the current income tax surcharge of 7.5 per cent on domestic companies to five per cent but raised the Minimum Alternate Tax (MAT) from 18 to 18.5 per cent including developers of Special Economic Zones (SEZs) in it.
While leaving the rest of exemption slabs, surcharge and cess on income tax untouched, he reduced the qualifying age of senior citizens from 65 to 60 years, raised their exemption limit from Rs 2.40 lakh to Rs 2.50 lakh. No special benefit was announced for women whose basic exemption limit remains at Rs 1.90 lakh.
Mr. Mukherjee also created a new category of “Very Senior Citizens” of 80 years and above who will be eligible for a higher exemption limit of Rs five lakhs.
HIGHLIGHTS OF BUDGET 2011-2012
• Propose 5-fold strategy to check black money
• Food Security Bill will be introduced in current session
• Salaries of angadwadi workers to be raised from Rs 1500 to Rs 3000 and Rs 750 to Rs 1,500
• Scholarship schemes for SC/ST students in 9th-10th grade
• Phased move towards direct transfer cash subsidy to BPL people for better delivery of kerosene, LPG and fertilizer mooted
• Rs. 500 crore Women SHG Development Fund to be created
• Rs.10,000 crore for NABARD’s Short Term Rural Credit Fund for 2011-12
• 23.3% increase in allocation for infrastructure
• Bharat Nirman allocation increased by Rs.10,000 crore
• Total Rural broadband connectivity in three years.
• Allocation for education increased by24%. Rs.21,000 crore allocated for Sarv Shikshya Abhiyan registering an increase of 40%
• Food Security Bill will be introduced in current session
• Salaries of angadwadi workers to be raised from Rs 1500 to Rs 3000 and Rs 750 to Rs 1,500
• Scholarship schemes for SC/ST students in 9th-10th grade
• Phased move towards direct transfer cash subsidy to BPL people for better delivery of kerosene, LPG and fertilizer mooted
• Rs. 500 crore Women SHG Development Fund to be created
• Rs.10,000 crore for NABARD’s Short Term Rural Credit Fund for 2011-12
• 23.3% increase in allocation for infrastructure
• Bharat Nirman allocation increased by Rs.10,000 crore
• Total Rural broadband connectivity in three years.
• Allocation for education increased by24%. Rs.21,000 crore allocated for Sarv Shikshya Abhiyan registering an increase of 40%
Budget meets economic challenges: Manmohan
New Delhi, February 28 (ANI): The Prime Minister, Dr. Manmohan Singh, on Monday praising Finance Minister Pranab Mukherjee said the Union Budget meets all the challenges that the economy faces today including sustaining high growth rates. He said that adequate provisions have been made for infrastructure and social sector as well as agricultural development. “It is important to curb inflationary expectation and for this it is necessary to consolidate fiscal deficit. Pranab Mukherjee has done a commendable job on this front,” said Dr. Singh. “The budget signals that the government is reform oriented. The Finance Minister has talked about plans to bring in legislation like one on insurance and pension fund regulation,” he added. Commenting on the black money issue, Dr. Singh said that it has to be dealt in a holistic manner.
New Delhi, February 28 (ANI): The Prime Minister, Dr. Manmohan Singh, on Monday praising Finance Minister Pranab Mukherjee said the Union Budget meets all the challenges that the economy faces today including sustaining high growth rates. He said that adequate provisions have been made for infrastructure and social sector as well as agricultural development. “It is important to curb inflationary expectation and for this it is necessary to consolidate fiscal deficit. Pranab Mukherjee has done a commendable job on this front,” said Dr. Singh. “The budget signals that the government is reform oriented. The Finance Minister has talked about plans to bring in legislation like one on insurance and pension fund regulation,” he added. Commenting on the black money issue, Dr. Singh said that it has to be dealt in a holistic manner.
What’s cheaper, what’s dearer
Finance Minister Pranab Mukherjee today retained the rate of standard excise duty at 10 per cent in the Budget for 2011-12, giving a little respite to industry, which feared a rollback of stimulus measures. However, he has brought 130 items under the tax net by withdrawing exemptions granted earlier, though the burden would only be of the order of 1 per cent. Most of these relate to the consumer goods sector.
The list of the items that will become cheaper and more expensive are as under:
Cheaper:
Mobile phones
LED lights
Printers
Paper
Soap
Battery driven vehicles
Home loans
Diapers and sanitary napkins
Homeopathic medicines
Yarn/Raw silk
Food
Stainless steel
Refrigeration system
Agriculture machinery-Tractors
Cement
Gas dispensers
Solar lanterns
Hybrid fuel kits
Bio-based Asphalt
Dearer:
Branded garments
Air-conditioned Bars & restaurants (serving liquor)
Air conditioned Hospitals
Air travel
Gold
Hotel services
The list of the items that will become cheaper and more expensive are as under:
Cheaper:
Mobile phones
LED lights
Printers
Paper
Soap
Battery driven vehicles
Home loans
Diapers and sanitary napkins
Homeopathic medicines
Yarn/Raw silk
Food
Stainless steel
Refrigeration system
Agriculture machinery-Tractors
Cement
Gas dispensers
Solar lanterns
Hybrid fuel kits
Bio-based Asphalt
Dearer:
Branded garments
Air-conditioned Bars & restaurants (serving liquor)
Air conditioned Hospitals
Air travel
Gold
Hotel services
(With PTI inputs)
