Indian Union budget 2011- 2012

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Union Budget 2011- 2012 VIMAL MAURYA PG10-099 PRESENTED BY

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Transcript of Indian Union budget 2011- 2012

Page 1: Indian Union budget 2011- 2012

Union Budget

2011-2012

VIMAL MAURYAPG10-099

PRESENTED BY

Page 2: Indian Union budget 2011- 2012

REVENUE 

1. Gross tax receipts seen at Rs 9.32 trillion in 2011-12

2. Corporate tax receipts seen at Rs 3.6 trillion in 2011-12

3. Tax-to-GDP ratio seen at 10.4 percent in 2011-12; seen at 10.8 percent in 2012-13

4. Customs revenue seen at Rs 1.52 trillion in 2011-12

5. Factory gate duties seen at Rs 1.64 trillion in 2011-12

6. Non-tax revenue seen at Rs 1.25 trillion in 2011-12

7. Service tax receipts seen at Rs 82,000 crore in 2011-12

8. Telecom fees, auction of broadband spectrum to raise Es 296.5 billion in 2011-12

Page 3: Indian Union budget 2011- 2012

SECTORS ` IN BILLIONGROSS TAX 9320NON-TAX 1250CORPORATE TAX 3600CUSTOMS REVENUE 1520FACTORY GATE DUTIES 1640SERVICE TAX 820INDIRECT TAX 113

GROSS TAX 51%

NON-TAX 7%

CORPORATE TAX 20%

CUSTOMS REVENUE 8%

FACTORY GATE DUTIES 9%

SERVICE TAX4%

INDIRECT TAX 1%

I`N BILLION

REVE

NU

E

Page 4: Indian Union budget 2011- 2012

SECTORS ` IN BILLION

DEFENCE 1640BANKING 201.5EDUCATION 520.5HEALTH 267.6

RURAL INFRA 180AGRICULTURE 4750OTHER 9770.4TOTAL 12580

DEFENCE10% BANKING 1%

EDUCATION 3%HEALTH2%

RURAL INFRA 1%

AGRICULTER 27%OTHER

56%

`IN BILLION

TOTAL ANNUAL BUDGET2011-12 IS- $273bOr $273000mOr `1257729 croreWhich is more than

147 countries GDP

EXPE

ND

ITU

RE

Page 5: Indian Union budget 2011- 2012

One-Minute Budget

Service tax to boost revenue by Rs 4,000 cr Domestic travel to pay Rs 50 service tax, Rs 250 on international travel Life insurance services in area of investment now in service tax No excise duty on equipment for Ultra Mega Power projects Health check-up services now attract service tax

Cut in import duties of raw material for mobile phones Basic food, fuel exempted from central excise duty 1% excise duty on 130 new items Rs 5 lakh tax exemption limit for individuals above 80 years of age SEZ to come under MAT Minimum alternative tax raised 18.5% vs 18% Tax exemption limit increased to Rs 2.5 lakh for senior citizens

Page 6: Indian Union budget 2011- 2012

One-Minute Budget

Eligibile age for senior citizens is now 60 years against 65 years earlier Exemption limit for individual tax payers raised to Rs 1.8 lakh from Rs 1.6 lakh FY11 Fiscal Deficit at 5.1%, FY12 deficit seen at 46% Non-tax revenue Rs 1,25,000 crore Tax procedures for small businesses to be simplified Info exchange treaties signed with 13 tax havens To allocate Rs 58,000 cr to Bharat Nirman projects

Rural broadband connectivity to be provided in 3 years Task force will be formed to deal with black money To allow Rs 30K crore tax-free bonds for railways, NHAI Liberalisation of FDI policy Govt commited to retain 51% holding in PSUs DTC comes in force in April 2012 Economy expected to grow at 9% Food inflation at 20.2% in February

Page 7: Indian Union budget 2011- 2012

Rate of MAT proposed to be increased from 18 per cent to 18.5 per cent of book profits

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

AC restaurants serving liquor to come under service tax netHealth Check-Ups in Private hospitals to become expensiveEXPENSIVE: International Air TravelEXPENSIVE: Domestic Air TravelTax on life insurance service providers could be negative

for insurance companiesTravel, Healthcare to become expensive due to increased

service taxLack of FDI in retail was a disappointment New service tax to hurt companies in hospitalityHike in export duty on Iron Ore is a negative, says Motilal

OswalAir travel to cost moreBranded clothes may cost more

Negative

Page 8: Indian Union budget 2011- 2012

FISCAL DEFICIT

Fiscal deficit seen at 5.1 percent of GDP in 2010-11

Fiscal deficit seen at 4.6 percent of GDP in 2011-12

Fiscal deficit seen at 3.5 percent of GDP in 2013-14

Page 9: Indian Union budget 2011- 2012

Gross market borrowing for 2011-12 seen at Rs4.17 trillion (Reuters forecast Rs4.5 trillion)

Net market borrowing for 2011-12 seen at Rs3.43 trillion (Reuters forecast Rs3.77 trillion)

Revised market borrowing for 2010-11 at Rs4.47 trillion

Borrowing

Page 10: Indian Union budget 2011- 2012

1. Standard rate of excise duty held at 10 percent

2. Service tax rate held at 10 percent

3. Scope of service tax to be widened

4. Minimum alternate tax raised to 18.5 percent from 18 percent

5. Iron ore export duty raised to 20 percent

6. Personal income tax exemption limit raised to Rs 180,000

7. Surcharge on domestic companies raised to 5 percent

Taxes

Page 11: Indian Union budget 2011- 2012

Old Slabs New Slabs Tax Rate

Upto Rs 1.6 lakh Upto Rs 1.8 lakh Nil

Rs 1.6 – 3 lakh Rs 1.8 to 5 lakh 10%

Rs 3 – 5 lakh Rs 5 to 8 lakh 20%

ABOVE Rs 5 lakh ABOVE Rs 8 lakh 30%

1. Exemption Limit for Women : 1.9 Lacs2. Exemption Limit for Senior Citizen : 2.5 Lacs

Income Tax Slabs

Page 12: Indian Union budget 2011- 2012

Impact on your savings

Income ( Rs ) Old Slabs ( Rs ) New Slabs ( Rs ) Your Savings ( Rs )

60000 0 0 0

300000 14000 14000 0

400000 35020 24720 10300

500000 55620 35020 20600

600000 86520 55620 30900

700000 117420 76220 41200

800000 148320 96820 51500

900000 179220 127720 51500

1000000 210120 158620 51500

Page 13: Indian Union budget 2011- 2012

Subsidies

1. Subsidy bill in 2011-12 seen at Rs 1.44 trillion

2. Food subsidy bill in 2011-12 seen at Rs 605.7 billion

3. Revised food subsidy bill for 2010-11 at Rs 606 billion

4. Fertiliser subsidy bill in 2011-12 seen at Rs 500 billion

5. Revised fertiliser subsidy bill for 2010-11 at Rs 550 billion

6. Petroleum subsidy bill in 2011-12 seen at Rs 236.4 billion

7. Revised petroleum subsidy bill in 2010-11 at Rs 384 billion

8. State-run oil retailers to be provided with Rs 200 billion cash subsidy in 2011-12

Page 14: Indian Union budget 2011- 2012

THANK

U