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