8/7/2019 Ppt Budget

1/17

Chairperson Presented ByRavi Kumar Dinesh KumarRT1901A13 RT1901B50

8/7/2019 Ppt Budget

2/17

-

Dearer

-Legal Services

-Healthcare in

top end Pvt.hospitals.

-Branded Cloths

-Gold

-A/c restaurantsserving Liquor

-Hotel Services

-Printers-Paper-Soap

-Steel-Diapers &

Sanitary napkins-Homoeopathic

Medicines-Yarn/raw silk

-Mobile Phones-Agarbatti

-Solar Lantern,LED Lights

-Battery Driven-Vehicles

-Agriculturemachinery

Cheaper

8/7/2019 Ppt Budget

3/17

OVERVIEWOFECONOMY

India among the first few countries in the world toimplement major reforms to negate fallout of theglobal slowdown.

The growth rate in manufacturing sector inDecember 2009 was 18.5 per cent the highest inthe past two decades.

8/7/2019 Ppt Budget

4/17

Budget Snapshot 2010-11PEOPLES OWNERSHIP & IMPROVING

INVESTMENTENVIRONMENT

Government Plans to Raise more than Rs. 40000 Crs. through

Disinvestment of PSUs.

Road laid to draw draw foreign funds to infrastructure

MSMEs to get 5000 crore refinancing help from SIDBI

8/7/2019 Ppt Budget

5/17

The tax payer

y Senior who above 80 income up to 5Lac free from

taxy Direct Tax Code (DTC) to be implemented from 1st April,

2011.

y GST to be rolled out from 1st April, 2011.

y Rs 30000 crore tax free bonds this year

8/7/2019 Ppt Budget

6/17

The Consumery No Change in fuel price, gas, elcetricity

y Inflation to ease next year

y Housing interest rate become cheaper

y Service tax on medical treatment in

mid and large hospital(above 25 beds)

8/7/2019 Ppt Budget

7/17

The Investory Disinvestment adds 50 lakh new retail investor

y Disinvestment to raise Rs 40000crore

y Mutual funds can accept foreign money

8/7/2019 Ppt Budget

8/17

The corporatey IT surcharge reduced to 5% from 7.5%

y

Air travel costlier by Rs50-250 with hike in sevice taxy Excise duty unchanged at 10 %

y Duty concession on import of batteries of electric

vehicals

8/7/2019 Ppt Budget

9/17

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

2012y The Corporate tax,Firms,Local authority, Co operative

Societies rate remains unchangedy The basic rate of MAT increased to 18.5% from 18 %y The surcharge Non domestic companies reduced to 2 %

from 2.5 %y NEW INCOME-TAXreturn form called Sugam to be

introduced for small business.y Salary earners having an income of less than ` 5 lakh is

exempted for filing income tax return from this year.y Provision fortax-free infrastructure bonds extended by

1more year

8/7/2019 Ppt Budget

10/17

Conty TAX HOLIDAY for IT companies finally ends Levy

MAT on developers of SEZ and units operating inthem.

y Levy Alternative Minimum Tax (AMT) in the case ofLimited Liability partnerships at 18.5%

y Money market and debt funds will pay a higherdividendDistribution tax (DDT) for investment made

by firms.y DDT will rise to 30% from 25% but stay unchanged at

12% for individual investors.

y The TDS structure & rates remains unchanged

8/7/2019 Ppt Budget

11/17

Personal taxationy For MEN

Current Slabs (`) Proposed Slabs (`) BasicrateoftaxUpto160,000 Upto180,000 Nil

160,001to500,000 180,001to500,000 10%500,001to800,000 500,001to800,000 20%

Above800,001 Above800,001 30%

For WOMEN

Nochangeintax StructureUpto190,000 Upto190,000 Nil190,001to500,000 190,001to500,000 10%500,001to800,000 500,001to 800,000 20%

Above800,000 Above800,000 30%

8/7/2019 Ppt Budget

12/17

For Senior Citizen (60-80years)Age for eligibility reduced from 65 years to 60 Years

Upto 240,000 Upto 250,000 Nil240,001to500,000 250,001to500,000 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 Nil240,001to500,000 - 10%500,001to800,000 500,001to800,000 20% Above 800,001 Above 800,001 30%

8/7/2019 Ppt Budget

13/17

Indirect Taxy Central ExciseDuty to be maintained as 10% only (un changed)

y Nominal Central ExciseDuty of 1 % without Cenvat credit facility isbeing imposed on 130 items entering in the tax net.

y Lower rate of Central Excise Duty enhanced from 4 % to 5 %y Optional levy on branded garments or made up proposed to be

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

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

y Excise duty on sanitary napkin, baby & clinical diapers and adult

diapers is being reduced from 10% to 1% with no cenvat credit.y Concessional rate of excise duty for Hydrogen / hybrid vehicle.

y Exemption withdrawn on HD drive, CD/DVD drive,& writers, Flashmemory, Combo drives meant for fit inside of CPU or Laptop willattract 5% of concessional excise duty .

8/7/2019 Ppt Budget

14/17

Service taxy Service tax rate remains unchanged at 10 percent as a pre-cursor to GSTy Legal Cases will also become a costly affair to cover all legal consultations,

except individual to individual ,under service tax net.y Hotel accommodation in excess of` 1,000 per day will come under the ambit of

tax ,although there will be an abatement of 50%y 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 of70%

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

y 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.y The domestic air travel on higher classes will be taxed at the standard rate of

10%y Services provided by life insurance companies in the area of investment and

some more legal services proposed to be brought into tax net.

8/7/2019 Ppt Budget

15/17

Custom Dutyy Basic customs duty on agricultural machinery reduced to 4.5 per cent

from 5 per centy Basic customs duty on raw silk reduced from 30 to 5 per cent.y Basic customs duty on solar lantern or lamps reduced from 10 to 5%y CVD exempted fully on LEDs used for manf of LEDs light & fixtures.y Fully exemption from basic custom duty is being extended battery

charger, hands free, head phones and PC connectivity cable of mobilehandset including cellular phones.

y Basic customs duty on bamboo used for manf of agarbattis is beingreduced from 30% to 10%

y The government has added a fixed excise duty of` 160 per tonneoncement and reduced custom duty on petcoke and gypsum, key inputsfor the sector.

8/7/2019 Ppt Budget

16/17

Other Measurey Education budget allocation increased by 24%

y Infrastructure budget allocation increased by more

than23%y Fiscal deficit reduced from 5.5% to 5.1% of GDP.

Targeted 4.6 for 2011

y Economy expected to grow 9% in 2011-12

y Investment in new fertilizer plants gets tax concession.

8/7/2019 Ppt Budget

17/17

ThankYou