Highlights of Union Budget 2011-12

[Happy Family Group]

• Service tax widened to cover hotel accommodation above R.s.s1,000 per day, A/C restaurants serving
  
• liquor, some category of hospitals, diagnostic tests
  
• A new revised income tax return form 'Sugam' to be introduced for small tax papers
  
• Net revenue loss on account of taxes and duties will be R.s.s200 crore
  
• Service tax to result in a revenue gain of R.s.s4,000 crore
  
• No excise duty on equipment for UMPPs
  
• Export duty on iron ore pellets withdrawn
  
• 20% ad valorem export duty on iron ore
  
• To replace excise with ad valorem duties for cement
  
• Ship-owners allowed duty-free spare parts import
  
• Government intends to spend R.s.s2.14 lakh crore as budgetary support for the infrastructure sector in
  
• 2011-12
  
• Propose to raise service tax on air travel
  
• Excise and customs duty proposals to result in the net gain of R.s.s7,300 crore
  
• Export duty rates on iron ore unified and kept at 20 per cent ad valorem
  
• Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent
  
• Basic customs duty on raw silk reduced from 30 to 5 per cent.
  
• 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: FM
  
• Import duty on gypsum and coal from 5% to 2.5%
  
• Solar lanterns customs duty reduced
  
• Mobiles, homeopathic medicines, steel, LED, Diapers -- cheaper
  
• LED lights to get cheaper
  
• Hybrid, electrical vehicles to get cheaper
  
• No new tax exemption limit for women
  
• Direct tax sops to result in R.s.s11,500 cr net revenue loss
  
• Investment-linked deductions for fertilisers and developers of affordable housing
  
• Low withholding tax of 5% for notified infra funds
  
• Foreign dividend tax rate cut to 15% for Indian companies
  
• Total plan expenditure will go up 100% in nominal terms in the next year
  
• Service tax unchanged at 10%
  
• Extension of investment on long-term infrastructure bonds by one more year
  
• Minimum alternate tax raised from 18% to 18.5% of book profits
  
• R.s.s20,000 exemption for investment in infra debt funds for another year
  
• Maintain standard rate of excise duty at 10 pct
  
• Threshold income tax limit raised from R.s.s1.6 lakh to 1.8 lakh
  
• Financial Sector Legislative Reforms Commission, to be headed by former Supreme Court judge B
  
• Srikrishna, to complete its work in 24 months.
  
• Propose to levy MAT on developers of SEZs
  
• New category for 80 yrs and above, limit is R.s.s5 lakh
  
• MAT increased to 18.5 %
  
• In FY12 gross tax receipts at R.s.s9.32 lakh crore: FM
  
• Relaxation in exit age for National Pension scheme
  
• Anganwadi workers' salary up from R.s.s1500 to R.s.s3,000/mnth; helpers to get R.s.s1500
  
• State innovations council to be set up
  
• Scholarship for needy SC/ST students in class 9 and class 10
  
• R.s.s54 cr each to AMU Centres
  
• 
  
• Budget allocation for Defence sector at more than 1.64 trln rupees
  
• Allocation of R.s.s52057cr for education sector, increase of 24%
  
• Health sector outlay at R.s.s26760cr, increase of 20%
  
• Expect 10 lakh numbers to be generated per day from 1st Oct 2011 under UID
  
• Propose 300 crore to modernise stamp and registration in states
  
• R.s.s9 lakh compensation to be given to men of Defence and Central paramilitary forces for permanent
  
• disability and discharged from service
  
• Budget allocation of R.s.s150 cr for Jammu for implementation of projects identified by taskforce
  
• R.s.s8000 cr assigned for J&K for development projects
  
• Funds of R.s.s25 cr and 30 cr for Naxal affected areas
  
• Some 20 lakh Adhaar numbers given
  
• To speed up justice, propose a fund of RS 1000 crore to build judicial infrastructure and develop project
  
• ethos
  
• R.s.s58000 cr allocation for Bharat Nirman schemes
  
• Increased outlay on social sector outlay
  
• 10 existing double taxation avoidance treaties revised
  
• 5-fold strategy on black money
  
• 15 mega food parks to be set up
  
• Jodhpur to be included for handicraft sector development
  
• Delhi metro phase 3 to be taken up
  
• Mortgage risk guarantee fund to be created for economically weaker sections
  
• Financial assistance to ongoing metro projects
  
• R.s.s3000 cr to NABARD for more credit flow
  
• Increase in target credit flow to farmers
  
• States must review APMC Act
  
• Banks have been asked to increase lending to farmers
  
• 40 lakh tonne storage capacity by FY12
  
• Infrastructure status to cold storage chains
  
• 24 new cold storage projects sanctioned
  
• Private investment in agro processing to be increased
  
• Discussions on to further liberalise FDI policy
  
• 1% interest subvention for home loans up to R.s.s15 lakh
  
• 100 cr equity funds for micro finance companies
  
• Housing loan limit raised to 25 lakh for priority sector lending
  
• Bill to allow RBI to grant more banking licenses
  
• FII investment in corporate bonds hiked to 40 bn USD
  
• RBI guidelines for banking licenses by year-end
  
• Propose to form Women self help group development fund
  
• Economic growth rate expected at 8.75% to 9.25% in FY12
  
• Government to introduce GST bill amendments in this session
  
• Union Finance Minister aims for fiscal deficit of 3% by Financial Year 2014
  
• Will move to direct tax subsidy for fertiliser and kerosene
  
• Considering new fertilizer policy for urea
  
• Industrial growth seen at 8.1 percent, agriculture at 5.4 percent
  
• Financial Year 2012 disinvestment target is R.s.s40,000 crore
  
• Direct transfer of kerosene, LPG subsidy to BPL people
  
• Showing the road to a simpler future
  
• Food inflation down, but still a matter of concern
  
• Rollout of DTC to be effective from April 1, 2012
  
• Finance Minister expects current account deficit to come down next year
  
• Shri Pranab Mukherjee expects RBI measures to moderate inflation
  
• Union Finance Minister Shri Pranab Mukherjee begins Budget speech in Parliament
  

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Happy Family Group

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