Well it’s a mere coincidence that Union Budget and Academy Awards (Oscars) were announced on the same day. King’s speech swapped the show by claiming all the major awards like – Best Movie, Best Actor and Best actress.
Well let’s shift our focus from King’s Speech – The Movie to King of Finance – Pranab Da’s speech.
Well there were lots of expectations from this Budget. Prakash Somani Sir has mentioned few of them in his article - MY EXPECTATION FROM BUDGET.
I even read a brilliant write-up of Sudhir Sir on the same. There is no point in mentioning those points again so let’s move to Highlights and Analysis of Budget in my frame.
Friends I am neither an economist nor a financial analyst. I am a CA student and will mention what I have understood as a layman/common man.
(A) Inflation
Who can forget the onion/food prices last year!!
The main reason of inflation given by him was the gap b/w wholesale & retail price. Conditions have improved this January from last year but still it is a major issue and a matter of prime concern. Govt. is taking measures especially to control food prices and expects it to fall next year- I will say WIP (Work-in-progress)
(B) LOANS/MONETARY/AGRICULTURE
- Budget proposes to raise housing loan limit from Rs 20 lakh to Rs 25 lakh and 1% reduction in the interest rates on loan upto 15L – Good move
- Remuneration of Anganwadi Helpers is being raised from Rs 1500 to Rs 3,000 per month & Rs 1,500 from Rs 750 – Well I hail from a small city of Western-Up (Bijnor) and seeing the present system of Anganwaadi in my city don’t consider it as a very wise move. Absenteeism and corruption are the major highlights of Anganwadi and first a proper system s’d be developed to check the discrepancies of the same otherwise our hard earned money is gonna waste in such schemes-thumbs down from me
- Capital Investment in Fertilizer it to be treated as Investment. 3% Interest subsidy to farmers - thumbs UP
- Pension Age (BPL cards) reduced from 65years to 60 years and for 80+ age pension increased from Rs. 200 pm to Rs.500 pm - GOOD MOVE BUT
- STRICT VIGILANCE IS REQUIRED IN DISTRIBUTION OF AMOUNT
- Direct Tax Code will be implemented from April, 2012 and the Goods and Services Tax Bill is to be introduced in Parliament this year – Expected
- Exemption limit for the general category of individual taxpayers enhanced from Rs. 1,60,000 to Rs. 1,80,000 giving uniform tax relief of Rs. 2,060-BELOW EXPECTATIONS
- A New category of V.Senior citizen created for people of 80+ age and a exemption limit of Rs 500000 will be provided to them – NOT USEFUL FOR MIDDLE/ LOWER CLASS
- Qualifying age reduced for senior citizens from 65 years to 60 years - thumbs UP
- No change in tax slab for Woman Assessee - DISSAPOINTED
- The standard rate of central exercise duty will be maintained at 10%. A 1% central excise duty on 130 items entering the tax net and there will be no change in CENVAT rates - A MOVE TO
- Tax on all services provided by hospitals with 25 or more beds with facility of central air conditioning- BLUNDER. JUST TELL ME ANY ICU WITHOUT AN AC FACILITY. A big blow on lower middle class people
- Hotel accommodation in excess of ` 1,000 per day and service provided by air conditioned restaurants that have license to serve liquor added as new services for levying Service Tax- NECESSARY MOVE TO COVER UP THE LOSS FROM DIRECT TAXES.
- A new simplified form ‘Sugam’ to be introduced to reduce the compliance burden of small tax payers- APPRECIABLE MOVE
- Tax free bonds of Rs. 30,000 Crore proposed to be issued by Government undertakings during 2011-12 – Expected
- Salaried employee having no other source of income is exempted from filing the return– TOTAL WASTE. JUST TELL ME THAT IS THERE ANY SALARIED PERSON WITHOUT ANY F.D. OR A SAVING A/C? IF NO, THEN INTEREST INCOME WILL COME UNDER INCOME FROM OTHER SOURCES AND HE WILL BE REQUIRED TO FILE THE RETURN.
(D) OTHER IMPORTANT ANNOUNCEMENTS
- Cash subsidy will be provided to people below poverty line for Kerosine,Fertilizers & LPG – BRILLIANT MOVE BUT DEPENDS A LOT ON APPLICATION
- FII investment through Mutual Funds – CRUCIAL FOR INDIAN ECONOMY
- 5 Point Strategy to deal with Black Money - no expectation from this system kyunki chor khazane ki raksha nahin kara karte
- Disvestment without Privitisation – TIMID DECISION
- Scholarship scheme for SC/ST students studying in classes IX and X- JUST ONE QUESTION. WHY ONLY FOR SC/ST STUDENTS??
- Mobile, Laser Printer, Steel, Cement & LED will be cheaper and Brander clothes, branded Gold, Air Travel, Medical check-up will become costlier- NO COMMENTS
CONCLUSION
Well half of the Union Budget focused on Infrastructure. It is a good budget for Industry. But FM has missed an opportunity. The reason for the same is it can’t be called as “Aam Aadmi ka Budget”.
Friends this is totally my own write-up and took me whole day to finalize the points. It is quite different from my usual category i.e. Inspirational. I have tried my level best to keep the matter simple but effective. Your comments and suggestions for improvement are most welcome.
Regards,
Pulkit Gupta
CAclubindia
