Submitted ByPriya Sahni

Vineeta Dhanwani

What does the annual Union Budget mean?

The annual Union Budget is the Finance Minister’s report on what the Government of

India has done with the country’s money over the past year and what is expected in

the coming year.

Who decides the budget?

The Finance Minister presents the final Budget,

after it is worked on by the Ministry of Finance. The Budget is presented

to the Lok Sabha on the last working day

of February. It has then to be

discussed and passed by the house before coming into effect

on April 1st.

How does the

Union Budget affect

my life?

The Union Budget not only talks about

what has happened in the past year, but also what is likely to happen

in the coming year. While many of the things discussed in

the Budget affect us indirectly, one space that directly impacts us

is Taxation! The Tax Slabs & Norms

are often tweaked or changed completely in the Budget,

which means that the amount of tax you pay could increase or decrease!

-

Dearer

-Legal Services

-Healthcare in top – end Pvt. hospitals.

-Branded Cloths

-Gold

-A/c restaurants serving Liquor

-Hotel Services

-Air frieght

-Vaccine

-Printers-Paper-Soap-Steel

-Diapers & Sanitary napkins-Homoeopathic

Medicines-Yarn/raw silk

-Mobile Phones-Agarbatti

-Solar Lantern, LED Lights

-Battery Driven- Vehicles

-Agriculture machinery

Cheaper

GDP estimated to have grown at 8.6% in 2010-11 Exports grown by 9.6%, imports by 17.6% in April-

January 2010-11 over corresponding period last year Indian economy expected to grow at 9%  in 2011-12. Five-fold strategy to deal with black money.   Group of

Ministers to suggest ways for tackling corruption Direct Tax Code (DTC) to be effective from April 01,

2012 Rs.40,000 crore to be raised through disinvestment in

2011-12  Rs.500 crore to be provided to regional rural banks to

maintain 9% CRAR Capital to Risk Weighted Asset Ratio

India Microfinance Equity Fund of Rs.100 crore to be created by SIDBI

•  Micro Small and Medium Enterprises  MSME gets boost as Rs. 5000crore provided to SIDBI  and Rs.3000 crore to NABARD

•  Provision under Rural housing Fund enhanced to Rs.3000 crore• Allocation under Rashtirya Krishi Vikas yojna (RKVY) increased to

Rs.7860 crore• Allocation of Rs.300 crore to promote 60000 pulses villages

in rainfedareas•  Rs. 300 crore vegetable initiative to achieve competitive prices• Rs.300 crore to promote higher production of nutri-cereals• Rs.300 crore to promote animal based protein• Rs.300 crore Accelerated Fodder Development Programme to benefit

farmers in 25000 villages• Credit flow to farmers raised from Rs.3,75,000 crore to Rs.4,75,000crore• Rs.10,000 crore for NABARD’s Short Term Rural Credit Fund for 2011-12

• 58000cr for india development

• 4113 rural homes will be developed

• 3000cr for expenses to government organizations.

• FII limitation is $25b

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%

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%

• 52057cr for education.

• 21000cr to “purv shiksha abhiyan”

• 190 organizations is going to connect with national knowledge network.

• Government provide connectivity to1500 organizations till march 2012.

• 1500cr secntioned loan for 7th planing.

• Permission of 30000cr for tax free bonds.

• 5400cr for free special central help.

• 98900cr for “PICHDA VARG”

• 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 basic rate of MAT increased to 18.5% from 18 %

• 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

Corporate tax

Public Sector Bank Capitalisation• ` 6,000 crore to be provided during 2011-12

to enable public sector banks to• maintain a minimum of Tier I CRAR of 8 per

cent.• Recapitalisation of Regional Rural Banks• ` 500 crore to be provided to enable Regional

Rural Banks to maintain a CRAR• of at least 9 per cent as on March 31, 2012.

Micro Finance Institutions

• “India Microfinance Equity Fund” of ` 100 crore to be created with SIDBI.

• Government considering putting in place appropriate regulatory framework to

• protect the interest of small borrowers.

• “Women’s SHG’s Development Fund” to be created with a corpus of ` 500 crore.

Housing Sector Finance

• Existing scheme of interest subvention of 1 per cent on housing loan further liberalised.

• Existing housing loan limit enhanced to ` 25 lakh for dwelling units under priority sector lending.

• Provision under Rural Housing Fund enhanced to ` 3,000 crore.

• To enhance credit worthiness of economically weaker sections and LIG

• households, a Mortgage Risk Guarantee Fund to be created under Rajiv Awas Yojana.

AGRICULTURE

• Removal of production and distribution bottlenecks for items like fruits and

• vegetables, milk, meat, poultry and fish to be the focus of attention this year.

• Allocation under Rashtriya Krishi Vikas Yojana (RKVY) increased from ` 6,755 crore to ` 7,860 crore.

Health• Plan allocations for health stepped-up by

20 per cent.

• Scope of Rashtriya Swasthya Bima Yojana to be expanded to widen the coverage.