Rajesh Bajaj
(433 Points)
Replied 28 February 2011
Aisha
(Finance Professional)
(7979 Points)
Replied 28 February 2011
Domestic air travel to cost Rs 50 more , international travel to increase by Rs 250 for service tax
shiv Shankar
(dd)
(2752 Points)
Replied 28 February 2011
- Domestic air travel to cost Rs 50 more , international travel to increase by Rs 250 for service tax
- Propose to raise service tax on air travel:
Vinita
(CA final (clrd grp 1) CS B.com(hons))
(135 Points)
Replied 28 February 2011
Basic Exemption limit for women reamins unchanged
BALASUBRAMANYA B N
(CCI STUDENT....)
(44679 Points)
Replied 28 February 2011
Rajesh
(Service )
(7576 Points)
Replied 28 February 2011
Finance minister Pranab Mukherjee on Monday presented to Parliament India's budget for the coming financial year beginning in April.
Following are the highlights of the budget:
TAXES
* Standard rate of excise duty held at 10 percent; no change in CENVAT rates
* Personal income tax exemption limit raised to Rs 180,000 from Rs 160,000 for individual tax payers
*For senior citizens, the qualifying age reduced to 60 years and exemption limit raised to Rs 2.50 lakh.
*Citizens over 80 years to have exemption limit of Rs 5 lakh.
* To reduce surcharge on domestic companies to 5 percent from 7.5 percent.
* A new revised income tax return form 'Sugam' to be introduced for small tax papers.
* To raise minimum alternate tax to 18.5 percent from 18 percent
* Direct tax proposals to cause 115 billion rupees in revenue loss
* Service tax rate kept at 10 percent
* Customs and excise proposals to result in net revenue gain of 73 billion rupees
* Iron ore export duty raised to 20 percent
*Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.
*Peak rate of customs duty maintained at 10 per cent in view of the global economic situation.
*Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent.
*Service tax widened to cover hotel accommodation above Rs 1,000 per day, A/C restaurants serving liquor, some category of hospitals, diagnostic tests.
*Service tax on air travel increased by Rs 50 for domestic travel and Rs 250 for international travel in economy class. On higher classes, it will be ten per cent flat.
* Revenue gain of Rs.11,000 crore from increase in indirect taxes.
* Electronic filing of TDS returns at source stabilised; simplified forms to be introduced for small taxpayers.
* Works of art exempt from customs when imported for exhibition in state-run institutions; this now extended to private institutions.
FISCAL DEFICIT
* Fiscal deficit seen at 5.1 percent of GDP in 2010-11
* Fiscal deficit seen at 4.6 percent of GDP in 2011-12
* Fiscal deficit seen at 3.5 percent of GDP in 2013-14
SPENDING
* Total expenditure in 2011-12 seen at 12.58 trillion rupees
* Plan expenditure seen at 4.41 trillion rupees in 2011-12, up 18.3 percent
REVENUE
* Gross tax receipts seen at 9.32 trillion rupees in 2011-12
* Non-tax revenue seen at 1.25 trillion rupees in 2011-12
GROWTH, INFLATION EXPECTATIONS
* Economy expected to grow at 9 percent in 2012, plus or minus 0.25 percent
* Inflation seen lower in the financial year 2011-12
DISINVESTMENT
* Disinvestment in 2011-12 seen at 400 billion rupees
* Government committed to retaining 51 percent stake in public sector enterprises.
* FDI policy being liberalised.
BORROWING
* Net market borrowing for 2011-12 seen at 3.43 trillion rupees, down from 3.45 trillion rupees in 2010-11
POLICY REFORMS
* To create infrastructure debt funds
* To boost infrastructure development with tax-free bonds of 300 billion rupees
* Food security bill to be introduced this year
* To permit SEBI registered mutual funds to access subscripttions from foreign investments
* Raised foreign institutional investor limit in 5-year corporate bonds for investment in infrastructure by $20 billion
* Setting up independent debt management office; Public debt bill to be introduced in parliament soon
* Bills on insurance, pension funds, banking to be introduced.
SECTOR SPENDING
* To allocate more than 1.64 trillion rupees to defence sector in 2011-12
* Corpus of rural infrastructure development fund raised to 180 billion rupees in 2011-12
* To provide 201.5 billion rupees capital infusion in state-run banks in 2011-12
* To allocate 520.5 billion rupees for the education sector
* To raise health sector allocation to 267.6 billion rupees
AGRICULTURE
* Removal of supply bottlenecks in the food sector will be in focus in 2011-12
* Agriculture growth key to development: Green Revolution waiting to happen in eastern region.
* To raise target of credit flow to agriculture sector to 4.75 trillion rupees
* Gives 3 percent interest subsidy to farmers in 2011-12
* Cold storage chains to be given infrastructure status
* Capitalisation of National Bank for Agriculture and Rural Development (NABARD) of 30 billion rupees in a phased manner
* To provide 3 billion rupees for 60,000 hectares under palm oil plantation
* Actively considering new fertiliser policy for urea
* Food storage capacity to be augmented - 15 more mega food parks to be set up in 2011-12; of 30 sanctioned in previous fiscal, 15 set up.
* Comprehensive policy on further developing PPP (public-private-partnership) model.
* Farmers need access to affordable credit.
* Moving to improve nutritional security.
* Necessary to accelerate production of fodder.
ON THE STATE OF THE ECONOMY
* "Fiscal consolidation has been impressive. This year has also seen significant progress in those critical institutional reforms that will pave the way for double digit growth in the near future."
* "At times the biggest reforms are not the ones that make headlines, but the ones concerned with details of governance which affect the everyday life of aam aadmi (common man). In preparing this year's budget, I have been deeply conscious of this fact."
* Food inflation remains a concern
* Current account deficit situation poses some concern
* Must ensure that private investment is sustained
* "The economy has shown remarkable resilience."
* Setting tone for newer, vibrant economy.
* Economy back to pre-crisis trajectory.
* Development needs to be more inclusive.
ON GOVERNANCE
* "Certain events in the past few months may have created an impression of drift in governance and a gap in public accountability ... such an impression is misplaced."
* Corruption is a problem, must fight it collectively
CA SAURABH GARG
(Working with MNC)
(360 Points)
Replied 28 February 2011
CA H M JOHARI
(CHARTERED ACCOUNTANT)
(191 Points)
Replied 28 February 2011
is there anything about DTC and IFRS
CA SAURABH GARG
(Working with MNC)
(360 Points)
Replied 28 February 2011
Whizkid
(student)
(640 Points)
Replied 28 February 2011
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 28 February 2011
MAT increased from 18% to 18.50%...
CA Netra
(Practice)
(117 Points)
Replied 28 February 2011
Plus points of the budget:-
Increase in exemption limit in tax slabs.
Cash subsidies for keronsene n fertilizers.
Increasing imporatnce for warhehouses would enable to reduce increase in prices for agricultural produce.
Rs.17000 Crs of food grains bringing to Private sector.
Roadmap for GST n DTC.
Focus on agriculture, literacy mission.
.
Minus points:
Service tax on hospitals having 25 beds or more .
Branded garments becomes costlier.
Increase in Air fare.
RAMYA NAIR
(CS Executive Inter)
(119 Points)
Replied 28 February 2011
1) Some legal services to be brought under service tax net. Service by an individual to another individual exempted.
2) Service tax on air travel increased by Rs 50 for domestic travel and Rs 250 for international travel in economy class. On higher classes, it will be 10% flat
3) Service tax widened to cover hotel accommodation above Rs 1,000 per day, A/C restaurants serving liquor, some category of hospitals, diagnostic tests.
4) Tax reductions to result in revenue loss of Rs 11,500 crore.
5) Tax slabs for women remain unchanged
6) Union Budget 2011 widens scope of service tax
7) Revenue deficit fixed at 2.3% in revised estimates of 2010-11 and 1.8% in 2011-12:FM
8) Nominal 1% central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted
9) No change in CENVAT rates.
10) Standard rate of central exercise duty maintained at 10%: FM
11) Revenue deficit fixed at 2.3% in revised estimates of 2010-11 and 1.8% in 2011-12
Budget estimates for 2011-12 projects Rs 9,32,440 crore - an increase of 24 per cent: FM
Minimum alternate tax raised from 18% to 18.5% of book profits
Extension of investment on long-term infrastructure bonds by one more year
12) Budget proposes no change in service tax.
13) Expenditure in 2011-12 estimated at Rs 12,57,729 crore, an increase of 13.4%
Budget to maintain standard rate of excise duty at 10%.
14) Income tax exemption limit raised, but no changes in slabs
Senior citizen age reduced from 65 to 60
Senior citizen concession extended to Rs 2.5 lakh, to above 80 to Rs 5 lakhs
Budget proposes to enhance tax limit for general public from Rs 1, 60,000 to Rs 1,80,000
15) Fiscal deficit brought down to 5.1%.
16) Rs 9 lakh compensation to be given to men of defence and central paramilitary forces for permanent disability and discharged from service
Rs 1.64 lakh crore for defence; more will be given if required:
17) GoM constituted to tackle corruption
18) Mahatma Gandhi National Rural Employment Guarantee Scheme wage rates linked to consumer price index; will rise from existing Rs 100 per day.
19) Allocation to health sector raised by 20%.
20) Old age pension to persons of over the age of 80 raised from Rs 200 to Rs 500.
21) Rs 50 crore grant to Aligarh Muslim University centres in Murshidabad in West Bengal and Malappuram in Kerala.
22) Remuneration of anganwadi workers raised from Rs 1500 to Rs 3,000 per month. Helpers to get Rs 1,500 from Rs 750.
23) Union Budget 2011 proposes 24% increase in education sector allocation
100% salary hike for Anganwadi teachers in Union Budget.
24) Rs 100 crore for IIT Kharagpur.
25) Union Budget 2011 allocates Rs 58000 crore for social schemes.
26) Education stocks Aptech, NIIT, Everonn, Edserv up 3-5% on budget proposals.
27) Fertiliser sector investment to get infrastructure status.
28) A new scheme to be introduced for refund of service tax on lines of drawback of duties.
29) Proposal to introduce self-assessment of customs duty wherein importers and exporters will themselves assess payment of duty.
30) Measures to be taken to bring back black money.
31) Food storage capacity to be augmented - 15 more mega food parks to be set up in 2011-12; of 30 sanctioned in previous fiscal, 15 set up.
32) Bills on insurance, pension funds, banking to be introduced.
33) Union Budget 2011 proposes 17% increase in social sector expenditure.
34) Rupee up on increase in FII corp bond limit.
35) To boost infrastructure development, proposes tax-free bonds of 300 billion rupees.
36) Infrastructure spending to be raised by 23%.
37) Existing interest subvention scheme on short term farm loans at 7 % interest to continue.
38) Credit flows to farmers raised from Rs 3.75 lakh crore to Rs 4.75 lakh crores.
39) Allocation under Rashtriya Krishi Vikas Yojana to be raised from Rs 6755 crore in the current year to Rs 7860 crore.
40) Rs 300 cr provided to promote pulses cultivation in rain-fed areas, another Rs 300 cr to promote farm product cultivation.
41) RBI to issue new guidelines for banking sector.
42) Housing loan limit for priority sector lending raised to Rs 25 lakh.
43) FIIs can invest $40 billion in corporate bonds.
44) Farmers to get 3% rebate on loan if payment is regular.
45) Proposal to increase rural housing fund to Rs 3,000 crore
Proposes to give Rs 3000 crore to NABARD.
46) Portfolio investment would be permitted in SEBI registered mutual funds from foreign subscripttions.
47) Seeks Lord Indra's blessings for good monsoon J
48) GST constitutional amendment bill to be introduced
49) FY12 disinvestment target at Rs 40000 crore
50) Women self-help group development fund created.
51) Cash transfer of subsidy on kerosene, LPG, fertiliser to BPL people.
52) Direct tax code to be implemented from April 1, 2012
53) Corruption is a problem, must fight it collectively.
54) Industry has grown by 8.1%.
55) Services have grown by 9.6%
56) Economy expected to grow by 9% next year
57) Agriculture has grown by 5.4%
58) GDP growth at 8.6%
59) Total food inflaction declined to less than 9 percent in January.
SOURCE : TIMES OF INDIA...
CA Ankit Gulgulia (Jain)
(B.COM (H) FCA CIFRS CBV R-ID (IICA) R. Valuer (IBBI))
(5842 Points)
Replied 28 February 2011
10%excise on garment branded clothes
nirmal jain
(student)
(75 Points)
Replied 28 February 2011
Direct Tax amendments
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)