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Union Budget - 2011 - Snapshot


Yet another budget from Mr.Mukerjee. The intention is to step up the pace for a double digit growth in the years to come.

Some salient features of this budget (as I could manage to hear from the net) concerning individual tax payer:
  1. Firm on the 1-Apr-2012 deadline for the Direct Tax Code (DTC)· FDI policy to be liberalized further
  2. Individual tax payers get a flat Rs.2,000 (as the basic exemption limit increased by Rs.20,000) - further benefit to Senior citizens
  3. Senior citizen - Qualifying age limit lowered to 60 years (we can think of retiring soon) and the basic exemption limit increased by Rs.10,000.
  4. Senior citizen, who is 80 years & above will have the basic exemption limit at Rs.5,00,000.
  5. Additional deduction of Rs.20,000 for investment in long-term infrastructure bonds to continue for one more year.
Corporate (major items relating to tax rates):
  • Surcharge on corporate lowered to 5%Cheers,
  • MAT rate increased by 0.5% to 18.5%
  • Lower rate of 15 per cent tax on dividends received by an Indian company from its foreign subsidiary
The Fiscal deficit kept at 4.6% of GDP for 2011-12. To me, this budget is a good one, given the situation. We need to see how the government going to grow, contain the risk and not widening the deficit.

I will go through the text of the speech in details and post a detailed one covering direct, indirect taxes and economy.

Gopal

5 comments:

Anonymous said...

Very neat and crisp. Any news on Captial Gains tax?
Rgds. Shekar

Gopal Ramanan on Feb 28, 2011, 3:52:00 PM said...

Hi Shekar,
No news on Capital Gains. It stands unchanged. Let me see the entire speech and see if there is any mention. It may be in DTC the Cap Gain will be taken out.
Cheers,
Gopal

Jyotsna said...

Thanks, Gopal. Is there any information on how the budget will affect small business owners ?

Jo

Bala_Cogzidel on Mar 2, 2011, 8:24:00 AM said...

Dear Gopal,

Nice one.

A small correction.

Point No. 5 which reads as follows:

"Additional deduction of Rs.20,000 for investment in long-term infrastructure bonds"

to be read as:

"Additional deduction of Rs.20,000 for investment in long-term infrastructure bonds to be extended for one more year"

Regards
Bala
CFO, www.cogzidel.in

Gopal Ramanan on Mar 2, 2011, 12:49:00 PM said...

Thanks Bala for pointing it out. I missed the words - extended for a year.

Cheers,
Gopal

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