The minimum age to qualify for being a senior citizen is now 60 years, as against 65 years earlier.

- a good indication .

YAHOO NEWS

As he had highlighted in the Economic Survey tabled in Parliament last Friday, Finance Minister Pranab Mukherjee while presenting the Union Budget on Monday said growth in 2010-11 has been broad-based but inflation continues to remain a concern.

Mukherjee however exuded confidence that the RBI's monetary policy would lead to moderation in inflation in the coming months. Mukherjee also put emphasis on increasing agricultural productivity to curb food inflation.

The Finance Minister did not disappoint individual tax payers either and raised the threshold income tax limit to Rs. 1.8 lakh from the present Rs. 1.6 lakh. This now becomes uniform for both men and women.

He brought down the eligibility age for senior citizen's tax exemption to 60 years from 65. Mukherjee also announced that exemption for senior citizens would be Rs. 2.5 lakh from the present Rs. 2.4 lakh.

He also announced a special category of tax-paying senior citizens. Those 80 or above would get an exemption of Rs. 5 lakh, he said.

Mukherjee also said last year had been a remarkable fiscal year and that the Indian economy was expected to grow steadily at 9 per cent.

Mukherjee said: "I see Budget 2011-12 as a transition towards more transparent and a result-oriented economic management."

The penalty for late filing of half yearly Service tax return has been increased from the present Rs. 2,000/- to Rs. 20,000/-. 

Increase in duty on gold and silver import – Not Good for Gold and jewel stocks.
— Clean energy cess of Rs 50 per ton to be levied on coal produced in India
— 10 per cent central excise duty on all non-petroleum products
— Structural changes in excise duties on cigarettes, cigars and cigarillos – Not good for ITC
— Revenue loss of Rs 26,000 crore on direct tax proposals.
— 7.5 per cent duty on petrol, diesel, crude restored.
— Exempt duty raised for all non-smoking tobacco producs
— Investment linked tax deductions to be allowed to two—star hotels anywhere in the country.
— Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011—12 and 2012—13 respectively.
— Surcharge on companies reduced to 7.5 per cent
— Additional exemption of Rs 20,000 for long tem investment in infra bonds
— National Social Security Fund created for workers in unorganised sector with allocation of Rs.1,000 crore
— Government to give Rs.1,000 for each National Pension Scheme account opened by workers in the unorganised sector
— Exclusive skill development programme for the textile sector
— Fifty percent hike in allocation for schemes for women and child development
— Rs.4,500 crore allocated for ministry of social justice and empowerment, a hike of 80 percent
— Rs.2,600 crore allocated for ministry of minorities affairs
— Rs.1,900 crore for Unique Identification Authority of India
— Rs.147,344 crore allocated for defence
— 2,000 youth to be recruited in central paramilitary forces
— Draft Food Security Bill prepared and will be put in the public domain
— Allocation on primary education raised from Rs.26,800 crore to Rs.31,300 crore
— Banking facilities to be provided to all habitations with a population of 2,000 and more
— Rs.66,100 crore allocated for rural development in 2010—11; Rs.40,100 crore for National Rural Employment Scheme; RS.48,000 crore for Bharat Nirman
— Rs.1,270 crore allocated for Rajiv Awas Yojna for slum dwellers, up from Rs.150 crore, an increase of 700 percent with the aim of creating a slum free India.
— Forty—six percent of plan allocations in 2010—11 will be for infrastructure development
— Coal Regulatory Authority to be set up to benchmark standards of performance
— Allocation for new and renewable energy sector increased 61 percent from Rs.620 crore to Rs.1,000 crore in 2010—11
— National Clean Energy Fund to be established
— Rs.200 crore allocated as special package for Goa to prevent erosion and increase green cover.
— Government committed to growth of SEZs.
— Four—pronged strategy for growth of agricultural sector.
— Rs.200 crore to be provided in 2010—11 for climate—resilient agricultural initiative.
— Involvement of private sector in grain storage to continue for another two years.
— In view of drought and floods, debt repayment period extended to June 2010.
— Five more mega food processing projects in addition to 10 existing ones.
— FDI flows in April—December 2009 $20.9 billion.
— FDI policy to be made more user—friendly with one comprehensive document.
— Apex level financial stability council to be set up for banking sector.
— Indian Banking Association to give additional licences to private players.
— Provision for further capital for regional rural banks.
— Roadmap for reducing public debt in six months.
— Implementation of direct tax code from April 2011.
— Government actively engaged in finalising structure of general sales tax regime; hopes to implement it from April 2011.
— Rs.35,000 crore raised from divestment in 2009—10; will be higher in 2010—11.
— New fertiliser policy from April 2010; will lead to improved productively and more income for farmers.
— Economy stabilised in first quarter of 2009—10; strong rebound in second quarter; overall growth at 7.2 and could be higher when Q3 and Q4 are taken into account.
— Export figures for January encouraging.
— Hope to breach 10 percent growth mark in not too distant future.
— Government set in motion steps to bring down food inflation.
— Need to review stimulus package; need to make growth more broad—based.
— India has weathered global economic crisis well; Indian economy in far better position than it was a year ago. In 2009 Indian economy faced grave uncertainty; delay in southwest monsoon had undermined agricultural production.
— First challenge now is to quickly revert to 9 percent growth and then aim for double digit growth; need to make recovery more broadbased.
— Second challenge is to make growth more inclusive; have to strengthen food security.
— Third challenge is to overcome weakness in government’s public delivery mechanism; a long way to go in this.

Direct Taxes

·       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 2,000.

·       Exemption limit enhanced and qualifying age reduced for senior citizens.

·       Exemption limit for Very Senior Citizens, who are 80 years raised to Rs 500,000.

·       Current surcharge of 7.5 per cent on domestic companies proposed to be reduced

·       to 5 per cent.

·       Rate of Minimum Alternative Tax proposed to be increased from 18 per cent to

·       18.5 per cent of book profits.

·       Tax incentives extended to attract foreign funds for financing of infrastructure.

·       Additional deduction of Rs 20,000 for investment in long-term infrastructure bonds

·       proposed to be extended for one more year.

·       Lower rate of 15 per cent tax on dividends received by an Indian company from

·       its foreign subsidiary.

·       Benefit of investment linked deduction extended to businesses engaged in the

·       production of fertilisers.

·       Investment linked deduction to businesses developing affordable housing.

·       Weighted deduction on payments made to National Laboratories, Universities

·       and Institutes of Technology to be enhanced to 200 per cent.

·       System of collection of information from foreign tax jurisdictions to be

·       strengthened.

·       A net revenue loss of Rs 11,500 crore (Rs 115 billion) estimated as a result of proposals.

·       Indirect Taxes

·       To stay on course for transition to GST.

·       Central Excise Duty to be maintained at standard rate of 10 per cent.

·       Reduction in number of exemptions in Central Excise rate structure.

·       Nominal Central Excise Duty of 1 per cent imposed on 130 items entering in the

·       tax net.

·       Lower rate of Central Excise Duty enhanced from 4 per cent to 5 per cent.

·       Optional levy on branded garments or made up proposed to be converted into a

·       mandatory levy at unified rate of 10 per cent.

·       Peak rate of Custom Duty held at its current level.13

Agriculture and Related Sectors

·       Scope of exemptions from Excise Duty enlarged to include equipments needed for storage and warehouse facilities on agricultural produce.

·       Basic Custom Duty reduced for specified agricultural machinery from 5 per cent to 2.5 per cent.

·       Basic Custom Duty reduced on micro-irrigation equipment from 7.5 per cent to 5 per cent.

·       De-oiled rice bran cake to be fully exempted from basic Custom Duty. 

·       Export Duty of 10 per cent to be levied on its export.

Black Money

·       Five fold strategy to be put into operation to deal with the problem of generation and circulation of black money.

·       Membership of various international fora engaged in anti money laundering, financial integrity and economic development, Exchange of information for tax purposes and transparency, secured.

·       Various Tax Information Exchange Agreements and Double Taxation Avoidance Agreements concluded.  Foreign Tax Division of CBDT has been strengthened to effectively handle increase in tax information exchange and transfer pricing issues.

·       Enforcement Directorate strengthened three fold to handle increased number of cases registered under amended Money Laundering Legislation.

·       Finance Ministry has commissioned study on unaccounted income and wealth held within and outside the country.

·       Comprehensive national policy to be announced in near future to strengthen controls over prevention of trafficking on narcotic drugs.

Manufacturing Sector

·       Basic Custom Duty reduced for various items to encourage domestic value addition vis- -vis imports, to remove duty inversion and anomalies and to provide a level playing field to the domestic industry.

·       Rate of Export Duty for all types of iron ore enhanced and unified at 20 per cent ad valorem. Full exemption from Export Duty to iron ore pellets.

·       Basic Custom Duty on two critical raw materials of cement industry viz. petcoke and gypsum is proposed to be reduced to 2.5 per cent.

·       Cash dispensers fully exempt from basic Customs Duty.

Environment

·       Full exemption from basic Customs Duty  and a concessional rate of Central Excise Duty extended to batteries imported by manufacturers of electrical vehicles.

·       Concessional Excise Duty of 10 per cent to vehicles based on Fuel cell technology.

·       Exemption granted  from basic custom duty and special CVD to critical parts/assemblies needed for Hybrid vehicles.

·       Reduction in Excise Duty on kits used for conversion of fossil fuel vehicles into hybrid vehicles.

·       Excise Duty on LEDs reduced to 5 per cent and special CVD being fully exempted.

·       Basic Customs Duty on solar lantern reduced from 10 to 5 per cent.

·       Full exemption from basic Customs Duty to Crude Palm Stearin used in manufacture of laundry soap.

·       Full exemption from basic Excise Duty granted to enzyme based preparation for pre-tanning

Infrastructure

·       Parallel Excise Duty exemption for domestic suppliers producing capital goods needed for expansion of existing mega or ultra mega power projects.

·       Full exemption from basic Customs Duty to bio-asphalt and specified machineryfor application in the construction of national highways.

Other Proposals

·       Scope of exemptions from basic Customs Duty for work of art and antiquities extended to apply for exhibition or display in private art galleries open to the general public.

·       Exemption from Import Duty for spares and capital goods required for ship repairunits extended to import by ship owners.

·       Concessional basic Custom Duty of 5 per cent and CVD of 5 per cent available to newspaper establishments for high speed printing presses extended to mailroom equipment.

·       Jumbo rolls of cinematographic film fully exempted from CVD by providing full exemption from Excise Duty.

·       Outright concession to factory-built ambulances from Excise Duty.

·       Relief measures proposed for raw pistachio, bamboo for agarbatti, lactose for the manufacture of homoeopathic medicines, sanitary napkins, baby and adult diapers.

·       Proposals relating to Customs and Central Excise estimated to result in a net revenue gain of Rs 7,300 crore (Rs 73 billion).

Service Tax

·       Standard rate of Service Tax retained at 10 per cent, while seeking a closer fit between present regime and its GST successor.

·       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.

·       Tax on all services provided by hospitals with 25 or more beds with facility of central air conditioning.

·       Service Tax on air travel both domestic and international raised.

·       Services provided by life insurance companies in the area of investment and some more legal services proposed to be brought into tax net.

·       All individual and sole proprietor tax payers with a turn over upto Rs 60 lakhs (Rs 6 million) freed from the formalities of audit.

·       To encourage voluntary compliance the penal provision for Service Tax are being rationalised. 

·       Similar changes being carried out in Central Excise and Custom laws.

·       Proposals relating to Service Tax estimated to result in net revenue gain of Rs 4,000 crore (Rs 40 billion).

·       Proposals relating to Direct Taxes estimated to result in a revenue loss of Rs 11,500 crore (Rs 115 billion) and those related to Indirect Taxes estimated to result in net revenue gain of Rs 11,300 crore (Rs 113 billion).

OPPORTUNITIES

·       Swift and broad based growth in 2010-11 has put the economy back to its

·       pre-crisis growth trajectory.  Fiscal consolidation has been impressive.

·       Significant progress in critical institutional reforms that would set the pace for

·       double-digit growth in the near future.
Dynamism in the rural economy due to scaled up flow of resources to the

·       rural areas.

CHALLENGES

·       Structural concerns on inflation management to be addressed by improving supply response of agriculture to the expanding domestic demand and through stronger fiscal consolidation.

·       Implementation gaps, leakages from public programmes and the quality  of outcomes pose a serious challenge.

·       Impression of drift in governance and gap in public accountability is misplaced.

·       Corruption as a problem to be fought collectively.  
Government to improve the regulatory standards and administrative practices.

·       Inputs from colleagues on both sides of House are important in the wider national

·       interest.

·       Budget 2011-12 to serve as a transition towards a more transparent and result oriented economic management system in India.

OVERVIEW OF THE ECONOMY

·       Gross domestic product estimated to have grown at 8.6 per cent in 2010-11 in real terms. 

·       Economy has shown remarkable resilience.

·       Continued high food prices have been principal concern this year.

·       Consumers denied the benefit of seasonal fall in prices despite improved availability of food items, revealing shortcomings in distribution and marketing systems.

·       Monetary policy measures taken expected to further moderate inflation in coming months.

·       Exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during April to January 2010-11 over the corresponding period last year.

·       Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25

·       per cent in 2011-12.

·       Average inflation expected lower next year and current account deficit smaller.

SUSTAINING GROWTH

·       Fiscal consolidation

·       Fiscal consolidation targets at Centre and States have shown positive effect on

·       macro economic management of the economy.

·       Amendment to Centre's FRBM Act, 2003 laying down the fiscal road map for

·       the next five years to be introduced in the course of the year.

·       Proposal to introduce the Public Debt Management Agency of India Bill in the

·       next financial year.

Tax Reforms

·       Direct Taxes Code to be finalised for enactment during 2011-12.  
DTC proposed to be effective from April 1, 2012.

·       Areas of divergence with States on proposed Goods and Services Tax have been narrowed.

·       As a step towards roll out of GST, Constitution Amendment Bill proposed to be introduced in this session of Parliament.

·       Significant progress in establishing GST Network, which will serve as

·       IT infrastructure for introduction of GST.

Expenditure Reforms

·       A Committee already set up by Planning Commission to look into the extant classification of public expenditure between plan, non-plan, revenue and capital.

Subsidies

·       Nutrient Based Subsidy has improved the availability of fertiliser; government actively considering extension of the NBS regime to cover urea.

·       Government to move towards direct transfer of cash subsidy to people living below poverty line in a phased manner for better delivery of kerosene, LPG and fertilisers. 
Task force set up to work out the modalities for the proposed system.

People's ownership of PSUs

·       Overwhelming response to public issues of Central Public Sector Undertakings during current year.

·       Higher than anticipated non-tax revenue has led to reschedulement  of some disinvestment issues planned for current year.

·       Rs 40,000 crore (Rs 400 billion) to be raised through disinvestment in 2011-12.

·       Government committed to retain at least 51 per cent ownership and management control of the Central Public Sector Undertakings

Investment Environment

·       Discussions underway to further liberalise the foreign direct investment policy.

Foreign Institutional Investors

·       Securities and Exchange Board of India registered mutual funds permitted to accept subscripttion from foreign investors who meet KYC requirements for equity schemes.

·       To enhance flow of funds to infrastructure sector, the FII limit for investment in corporate bonds issued in infrastructure sector being raised.

Financial Sector Legislative Initiatives

·       To take the process of financial sector reforms further, various legislations proposed in 2011-12.

·       Amendments proposed to the Banking Regulation Act in the context of additional banking licences to private sector players.

Veri nice post Ms. Neha.

Very expensive budget.

If sme person are in hospital for help then now Govt. also charge ser. tax on it.

if country is progress and minister are thinking worst like this then how can we leave this type of country.

doctors are god and now-onwards we have to pay ser. tax to god ....is this not a bed thinking.....

i not happy with past some budgets...........

salary person whose income is upto 5 lacs is no need to file their IT return & there Form 16 will serve as the return.

I feel that FM's committee has not worked very hard to present this budget. I am saying FMs committee because FM hardly do any value addition.. it is the expert committtee who gave the suggestions.

Its not at all a good budget. congress's 70000 Cr are becoming very hard on this budget. A directly hit of alll  the 70000 Cr amount on this budgets spendings.

I strongly feel this is a ANTI AAM ADMI BUDGET...130 new items under excise net...petrol rates to be hiked in april...hike in MAT....hike in air travel and hotel stay and restaurants.....

negligible benefits like hike in exmpn limit by Rs 20000....

Hi Ashish Sharma can u plz send me the Notification regarding change in penalty for delay in filing half yearly service tax return.

Thanks & regards,

R Shriram

tax relief to man individual by 2,000/-