AMITY GLOBALBUSINESS SCHOOL Chandigarh

INDIAN UNION BUDGET

2011-2012Highlights

Presented by:Charu Arora

AGBS

-

Dearer

-Legal Services

-Healthcare in top – end Pvt.

hospitals.Steel-up by Rs

600/tonne

-Branded Cloths

-Gold

-A/c restaurants serving Liquor

-Hotel Services

-Printers-Paper-Soap

-Diapers -Homoeopathic

Medicines-Yarn/raw silk

-Mobile Phones-Agarbatti

-Solar Lantern, LED Lights

-Battery Driven- Vehicles

-Agriculture machinery

Cheaper

AMITY GLOBALBUSINESS SCHOOL ChandigarhDIRECT TAXES

Corporate tax

• The Direct Taxes Code is likely to be effective from 1 April 2012

• The Corporate tax,Firms,Local authority, Co operative Societies rate remains unchanged

• The surcharge for domestic companies reduced to 5% from 7.5 %

• The surcharge Non domestic companies reduced to 2 % from 2.5 %

• NEW INCOME-TAX return form called Sugam to be introduced for small business.

• Salary earners having an income of less than ` 5 lakh is exempted for filing income tax return from this year.

• Provision for tax-free infrastructure bonds extended by 1more year

AMITY GLOBALBUSINESS SCHOOL Chandigarh

Personal Taxation• For MENCurrent Slabs (`) Proposed Slabs (`) Basic rate of tax

Upto160,000 Upto180,000 Nil

160,001to500,000 180,001to500,000 10%

500,001to800,000 500,001to800,000 20%

Above800,001 Above800,001 30%

For WOMEN

No change in tax Structure

Upto190,000 Upto190,000 Nil

190,001to500,000 190,001to500,000 10%

500,001to800,000 500,001to 800,000 20%

Above800,000 Above800,000 30%

AMITY GLOBALBUSINESS SCHOOL Chandigarh

For Senior Citizen (60-80years)

Age for eligibility reduced from 65 years to 60 Years

Upto 240,000 Upto 250,000 Nil

240,001to500,000 250,001to500,000 10%

500,001to800,000 500,001to800,000 20%

Above800,001 Above 800,001 30%

For Senior Citizen (80years & above)Hike in exemption limit to ` 5 lakh will result on big gains

Upto 240,000 Upto 500,000 Nil

240,001to500,000 - 10%

500,001to800,000 500,001to800,000 20%

Above 800,001 Above 800,001 30%

AMITY GLOBALBUSINESS SCHOOL Chandigarh

INDIRECT TAXES Central

excise• Optional levy on branded garments or made up proposed to be converted

into a mandatory levy at unified rate of 10 per cent.

• Labelled jewellery and Precious metals attract 1% excise duty.

• Excise duty on baby & clinical diapers is being reduced from 10% to 1%

• Concessional rate of excise duty for Hydrogen / hybrid vehicle.

• Exemption withdrawn on CD/DVD drive,& writers, Flash memory, Combo drives meant for fit inside of CPU or Laptop will attract 5% of concessional excise duty .

Changes come into effect immediately unless otherwise specified.

AMITY GLOBALBUSINESS SCHOOL Chandigarh

Service tax• Service tax rate remains unchanged at 10 percent as a pre-cursor to GST

• Legal Cases will also become a costly affair to cover all legal consultations, except individual to individual ,under service tax net.

• Hotel accommodation in excess of ` 1,000 per day will come under the ambit of tax ,although there will be an abatement of 50%

• service provided by air conditioned restaurants that have license to serve liquor added as new services for levying Service Tax at 3- 5%. After an abatement of 70%

• Tax on all services provided by hospitals with 25 or more beds with facility of central air conditioning at the rate of 5%

• Service Tax on air travel raised from ` 100 to ` 150 in the case of domestic air travel and ` 500 to ` 750 on international journeys by economy class.

• The domestic air travel on higher classes will be taxed at the standard rate of 10%

• Above rules are made effective from 01.04.2011

AMITY GLOBALBUSINESS SCHOOL Chandigarh

Customs duty

• 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.

• Basic customs duty on solar lantern or lamps reduced from 10 to 5%

• Exempted fully on LEDs used for manf of LEDs light & fixtures.

• Fully exemption from basic custom duty is being extended battery charger, hands free, head phones and PC connectivity cable of mobile handset including cellular phones.

• Basic customs duty on bamboo used for manf of agarbattis is being reduced from 30% to 10%

• Changes come into effect immediately unless otherwise specified.

AMITY GLOBALBUSINESS SCHOOL Chandigarh

Pranab Takes An Agro Stand

• Due to soaring food prices and falling farm productivity, the fm has announced the slew of measures to boost farm sector.

• He announced an increase in bank lending in farm sector as well as interest subsidy to farmers who pay short term crop loan on time.

• To extend green revolution, he announced an allocation of Rs 400 crore.

• He also provided Rs 300 crore to promote 60,000 pulses villages in rain fed areas for raising productivity and strengthening market linkages.

• Another Rs 300 crores was set aside for palm oil cultivation.

AMITY GLOBALBUSINESS SCHOOL Chandigarh

Pranab’s aim ,one arrow and three targets

Finance minister Pranab Mukherjee stated on Monday that this budget aimed at three key objectives:

• Signal a fresh focus on reforms• Enable the use of technology to curb corruption and

black money• To make agriculture more responsive to higher food

demands.