BUDGET 2011-12 : HIGHLIGHTS

BUDGET 2011-12 : HIGHLIGHTS

• Service tax proposals to generate Rs 4000 Cr
• Unambiguous definitions of input services proposed + Service taxpayers with turnover of Rs 60 lakh exempted from Audit + Penal provisions in Service tax streamlined
• Service tax levied on hotel accommodation above Rs 1000 per day with 50% abatement + AC Restaurants providing liquor + diagnostic labs + air travel (Rate hiked by Rs 50) + legal services provided by individuals to business
• Service tax - Cenvat Credit rules to be rationalised
• Excise proposals to generate Rs 7000 Cr revenue
• Jumbo rolls import granted exemption
• MAT rate hiked from 18% to 18.5%
• Capital goods for mega power projects - excise duty exemption granted to domestic suppliers
• Hybrid vehicles - full exemption from BCD and CVD
• Customs duty on inputs for cement industry reduced
• Export duty on all sorts of export of iron ores raised to 25%
• Basic customs duty reduced on paper, chemicals, yarns etc
• Agri equipments - import duty reduced to 2.5%; Micro-irrigation equipment - Customs duty reduced
• Customs Peak Rate - no change; Rationalisation of Customs rates proposed
• Branded garments / made-up - Excise duty levied to 10%
• Excise duty raised from 4% to 5% on items attracting 5% VAT
• Central Excise exemption withdrawn on 130 consumer items; 8% duty levied
• CBDT to notify 'Tool-Box' of counter-measures to deal with non-cooperative tax havens
• Direct taxes proposal to result in Rs 11500 Cr loss
• Investment linked deduction proposed for fertiliser and affordable housing
• Foreign dividend in hands of resident Indians to attract 15% tax
• Surcharge on domestic companies reduced to 5%; MAT levied on developers of SEZ
• Tax exemption limit raised to Rs 1.8 lakh; Sr Citizens' age reduced from 65 to 60; New category of Sr citizens created for 80 above - Rs five lakh exemption limit fixed
• Fiscal deficit to be brought down to 4.6%
• Total expenditure to be Rs 12,50,000 Crore; Gross tax receipts to be Rs 9,25,000 Cr
• Govt accepts TAGUP Reports on unique projects
• Sulabh Form to be introduced for small taxpayers
• Indian Stamp Act to be amended; Govt to table Bill soon; Rs 300 Cr to be given to States to switch over to e-stamping
• UID Scheme - AADHAR Numbers - Rs 10 lakh numbers to be generated from Oct 1, 2010
• Rs 1000 Cr more setting up e-courts and judicial reforms
• Rs 9 lakh ex-gratia payment for para military personnel on disability
• Rs 200 Cr allocated for cleaning up Lakes of special importance
• 150th Anniversary of Tagore: Rs 1 Cr Award for promoting Universal Value of Brotherhood
• Rs 500 Cr more for National Skill Development Council
• Black Money Problem: 1200 Cases booked for money-laundering in 2010
• 17% hike in allocation for social sectors
• Service tax refund to exporters and SEZ Units: A new scheme to be notified soon
• Rs 300 Cr to promote pulses-village in rain-fed areas
• Pre-Matric scholarships introduced for SCs / STs
• Rs 21000 Cr allocated for Sarvasiksha Abhiyan
• Anganwadi workers to get Rs 3000 per month; Helpers to get Rs 1000
• FM announces Self-Assessment System in Customs
• Investment in fertiliser sector to be treated as infrastructure sub-sector
• Govt to come out with manufacturing policy; to taget 25% growth in next 10 years; Two Committees set up and recommendations to be made available in two months
• Cold chain warehouses to be recognised as sub-sector of infrastructure
• Govt to infuse Rs 3000 Cr in equity of NABARD
• Rs 300 Cr allocated for vegetable centres to be set up
• Interest subvention for housing loans for poor extended + Rural Housing Fund to get Rs 1000 Cr more
• Rs 3000 Cr to be allocated to NABARD for handloom weavers
• To fund micro-finance, Rs 100 Cr corpus to be created with SIDBI
• LIC Corporation Bill + Insurance Amendment Bill + Banking Amendment Bill, Banking Regulation Act etc to be tabled
• SEBI-registered Mutual Funds to directly access FIIs' funds + FIIs can invest upto USD 40 bn in bonds
• Rs 40,000 Cr revenue to be mobilised from disinvestment in 2011-12
• Direct Transfer of Subsidy on Kerosene. Fertiliser and LPG: Nilekani to submit report by June
• DTC Bill to be finalized soon + Constitutional Amendment Bill for GST to be tabled in Parliament during Budget Soon + Pilot GST Portal to be put online by June
• Public Debt Management Agency to be set up
• Economy to grow at 9% in next fiscal
• Corruption is a problem for Nation: FM