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NEW DELHI: Finance minister Pranab Mukherjee presented Union Budget 2011 in Parliament today.

OVERVIEW: Budget estimates for 2011-12 projects Rs 9,32,440 crore - an increase of 24 per cent. Expenditure in 2011-12 is estimated at Rs 12,57,729 crore, an increase of 13.4%. Revenue deficit fixed at 2.3% in revised estimates of 2010-11 and 1.8% in 2011-12. Tax reductions to result in revenue loss of Rs 11,500 crore INFLATION: The finance minister opened his speech with reference to inflation saying that food inflation came down from 20.2% last year to 9.3% in January 2011 but it was still a matter of concern. "Government's principle concern is high food prices... food prices were high for cereals, there was a spurt in prices of onions and milk," he said. ( Inflation remains principal concern, to fall next year ) AGRICULTURE: In what may be a big relief for farmers, the FM said credit flows to farmers will be raised from Rs 3.75 lakh crore to Rs 4.75 lakh crores and the allocation under Rashtriya Krishi Vikas Yojana will be raised from Rs 6755 crore in the current year to Rs 7860 crore. ( Farm loans at 4%; credit target raised to Rs 4,75,000cr ) An additional Rs 300 cr will be provided to promote pulses cultivation in rain-fed areas and another Rs 300 cr to promote farm product cultivation. In joy for anganwadi workers, their remuneration is being raised from Rs 1500 to Rs 3,000 per month. Anganwadi helpers will get Rs 1,500 from Rs 750, Pranab said. ( Social spending to be raised by 17% ) Old age pension to persons of over the age of 80 will be raised from Rs 200 to Rs 500. HEALTH: 20 percent hike in health budget for 2011-2012. (Finance minister announces 20 per cent hike in health budget) ( Healthcare industry fumes at Budget) DEFENCE: The finance minister has allotted Rs 1.64 lakh crore for defence saying that more will be given if required. (11% hike in defence allocation) Rs 9 lakh compensation will be given to men of defence and central paramilitary forces for permanent disability and on being discharged from service. (Rs 9 lakh disability compensation for defence personnel) INCOME TAX: No change in tax slabs has been proposed. The tax exemption limit for general category has been raised from Rs 1,60,000 to Rs 1,80,000. ( Tax limit enhanced from Rs 1,60,000 to Rs 1,80,000)

No change in tax exemption limit for women. For senior citizens, exemption age limit has been reduced from 65 to 60. Their tax exemption limit will be Rs 2,50,000. Apart from this, a new exemption bracket has been created for those above 80 years of age. Their tax exemption limit will be Rs 5,00,000. Surcharge for companies cut to 5 per cent, from 7.5 per cent. (Corporate Tax surcharge reduced to 5%) A new revised income tax return form 'Sugam' to be introduced for small tax papers. DIRECT TAX: The FM announced that Direct Tax Code will be implemented from April, 2012 and the Goods and Services Tax Bill is to be introduced in Parliament this year. ( Direct Taxes Code to be implemented from April 1, 2012 ) Goods and services tax bill in budget session: Pranab Mukherjee SERVICE TAX: 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 10% flat. ( Service tax on air travel increased ) EXCISE AND CUSTOMS DUTY: There is a proposal to introduce self-assessment of customs duty wherein importers and exporters will themselves assess payment of duty. There will be change in excise duty. The standard rate of central exercise duty will be maintained at 10%. A 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 and there will be no change in CENVAT rates. (Excise duty retained at 10%, more items to be taxed) A new scheme is to be introduced for refund of service tax on the lines of drawback of duties, he announced. Also, capital investment in fertiliser production will be considered as infrastructure sub-sector, Pranab said. Tax-free bonds of Rs 30,000 cr will be issued for infrastructure development which will cover Warehousing Corporation, NHAI, IRFC and HUDCO. EDUCATION: A Rs50cr grant is being allocated to Aligarh Muslim University centres in Murshidabad in West Bengal and Malappuram in Kerala. Also, the government has decided to allot Rs 200 cr to IIT Kharagpur. ( 24% hike in allocation for education ) GROWTH: Predicting growth patterns over the next fiscal, Pranab said the overall economic

growth in the current fiscal was expected at 8.6 %, agriculture growth at 5.4 %, industry at 8.1 % and services 9.3 %. In the next fiscal, economic growth was likely to be 9%, he said. ( Economy grew 8.2% in last 2010 quarter ) Pranab said India raised foreign institutional investor limit in 5-year corporate bonds for investment in infrastructure by $20 billion. The government, he said, aims to provide Rs 201.5 billion capital infusion in state-run banks in 2011-12 and Rs 3 billion for 60,000 hectares under palm oil plantation "I see Budget 2011-12 as transition towards more transparent and result-oriented economic management," he said adding that stronger fiscal coordination was needed. He said that corruption continued to be deterrent in the country's development and had to be fought extensively. Pranab Mukherjee said the government plans to create a Women Self Help Group development fund with a corpus of Rs 500 crore. There is also a proposal to increase rural housing fund to Rs 3,000 crore. ( Low-cost housing loans of Rs 15 lakh to get 1% interest sop ) He also announced benefits for Below Poverty Line families by allowing direct transfer of subsidies in kerosene and LPG for such individuals. Also, NABARD capital base will be strengthened and Rs 10,000 cr will be provided to it as short term credit fund. Pranab announced the formation of Indian micro finance equity with SIDBI at Rs 100 crore. Another Rs 6,000 cr will be given to public sector banks to maintain capital-to-risk assets ratio norms, he said. ( Rs 500 cr for Regional Rural Banks ) A budget allocation of Rs 100 cr has been made for Ladakh and Rs 150 cr for Jammu for implementation of projects identified by taskforce. TAX REBATE TO BUILDERS The government proposed full tax rebate on developing such projects under a notified scheme and raised the ceiling of one per cent interest subsidy on home loans upto Rs 15 lakh from the current Rs 10 lakh. In the Budget for 2011-12, finance minister Pranab Mukherjee proposed 100% tax deductions on capital expenditure to develop affordable houses under government scheme, thus promoting builders to focus more on such homes. "Considering the importance of housing, I propose investment linked deduction to businesses, which develop affordable housing under a notified scheme," he said.

Currently under the section 35AD of the Income Tax Act, a housing project for slum redevelopment and rehabilitation is incentivised with 100% tax exemption. ( FM pushes for affordable homes; full tax rebate to builders )

Read more: Union Budget 2011: FM pushes for affordable homes; full tax rebate to builders The Times of India http://timesofindia.indiatimes.com/home/union-budget-2011/Union-Budget2011-FM-pushes-for-affordable-homes-full-tax-rebate-tobuilders/articleshow/7592516.cms#ixzz1FHWgwUyK
NEW DELHI: Salary earners having an income of less than Rs 5 lakh will not have to file tax returns from this year, a finance ministry official said. "Salaried people, may be up to Rs 5 lakh...they need not file the (income tax) return," CBDT chairman Sudhir Chandra told reporters at the customary post-Budget press conference. The exemption from filing tax returns come into effect from the assessment year 2011-12. In case such a salary earner has income from other sources like dividend, interest etc. and does not want to file returns, he will have to disclose such income to his employer for tax deduction, Chandra said. The government, he said, is working out a scheme and will notify it "very soon". The Form 16 issued to salaried employees will be treated as Income Tax Return, he added. Earlier, in the day, finance minister Pranab Mukherjee had proposed to exempt salaried employees from filing tax returns. According to the Memorandum to the Finance Bill 2011, the government will be issuing a notification exempting 'classes of persons' from the requirement of furnishing income tax returns. The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, it added. Every person whose income exceeds the taxable limit is presently required to file returns. Another finance ministry official said the decision to raise tax exemption limit of very senior citizens (80 years above) to Rs 5 lakh will benefit about 15,000 tax payers. Mukherjee announced an increase in the income tax limit of very senior citizens to Rs 5 lakh. They will have to pay a tax of 20% for income between Rs 5 lakh and Rs 8 lakh and 30 per cent beyond Rs 8 lakh.

Read more: Salary earners with income till Rs 5 lakh need not file returns - The Times of India

http://timesofindia.indiatimes.com/business/india-business/Salary-earners-with-income-till-Rs-5-lakhneed-not-file-returns/articleshow/7594874.cms#ixzz1FHXFKsYR