1. AM ITY GLO BAL
BUSINESS SCHO O L Chandigarh
INDIAN UNION BUDGET
2011-2012
Highlights
Presented by:
Charu Arora
AGBS

2. - -Printers
-Paper
-Soap
Dearer -Diapers
-Homoeopathic
Medicines
-Legal Services -Yarn/raw silk
-Mobile Phones
-Healthcare in -Agarbatti
top – end Pvt. -Solar Lantern,
hospitals. LED Lights
Steel-up by Rs -Battery Driven-
600/tonne Vehicles
-Agriculture
-Branded Cloths machinery
-Gold Cheaper
-A/c restaurants
serving Liquor
-Hotel Services

3. AM ITY GLO BAL
BUSINESS SCHO O L DIRECT TAXES Chandigarh
Corporate tax
• The Direct Taxes Code is likely to be effective from 1 April 2012
• The Corporate tax,Firms,Local authority, Co operative Societies rate
remains unchanged
• The surcharge for domestic companies reduced to 5% from 7.5 %
• The surcharge Non domestic companies reduced to 2 % from 2.5 %
• NEW INCOME-TAX return form called Sugam to be introduced for small
business.
• Salary earners having an income of less than ` 5 lakh is exempted for filing
income tax return from this year.
• Provision for tax-free infrastructure bonds extended by 1more year

4. AM ITY GLO BAL
BUSINESS SCHO O L Chandigarh
Personal Taxation
• For MEN
Current Slabs (`) Proposed Slabs (`) Basic rate of tax
Upto160,000 Upto180,000 Nil
160,001to500,000 180,001to500,000 10%
500,001to800,000 500,001to800,000 20%
Above800,001 Above800,001 30%
For WOMEN
No change in tax Structure
Upto190,000 Upto190,000 Nil
190,001to500,000 190,001to500,000 10%
500,001to800,000 500,001to 800,000 20%
Above800,000 Above800,000 30%

5. AM ITY GLO BAL
BUSINESS SCHO O L Chandigarh
For Senior Citizen (60-80years)
Age for eligibility reduced from 65 years to 60 Years
Upto 240,000 Upto 250,000 Nil
240,001to500,000 250,001to500,000 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 Nil
240,001to500,000 - 10%
500,001to800,000 500,001to800,000 20%
Above 800,001 Above 800,001 30%

6. AM ITY GLO BAL
BUSINESS SCHO O L Chandigarh
INDIRECT TAXES
Central excise
• Optional levy on branded garments or made up proposed to be converted
into a mandatory levy at unified rate of 10 per cent.
• Labelled jewellery and Precious metals attract 1% excise duty.
• Excise duty on baby & clinical diapers is being reduced from 10% to 1%
• Concessional rate of excise duty for Hydrogen / hybrid vehicle.
• Exemption withdrawn on CD/DVD drive,& writers, Flash memory, Combo
drives meant for fit inside of CPU or Laptop will attract 5% of concessional
excise duty .
Changes come into effect immediately unless otherwise specified.

7. AM ITY GLO BAL
BUSINESS SCHO O L Chandigarh
Service tax
• Service tax rate remains unchanged at 10 percent as a pre-cursor to GST
• Legal Cases will also become a costly affair to cover all legal consultations,
except individual to individual ,under service tax net.
• Hotel accommodation in excess of ` 1,000 per day will come under the
ambit of tax ,although there will be an abatement of 50%
• 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 of 70%
• Tax on all services provided by hospitals with 25 or more beds with facility
of central air conditioning at the rate of 5%
• 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.
• The domestic air travel on higher classes will be taxed at the standard rate
of 10%
• Above rules are made effective from 01.04.2011

8. AM ITY GLO BAL
BUSINESS SCHO O L Chandigarh
Customs duty
• Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5
per cent
• Basic customs duty on raw silk reduced from 30 to 5 per cent.
• Basic customs duty on solar lantern or lamps reduced from 10 to 5%
• Exempted fully on LEDs used for manf of LEDs light & fixtures.
• Fully exemption from basic custom duty is being extended battery charger,
hands free, head phones and PC connectivity cable of mobile handset
including cellular phones.
• Basic customs duty on bamboo used for manf of agarbattis is being reduced
from 30% to 10%
• Changes come into effect immediately unless otherwise specified.

9. AM ITY GLO BAL
BUSINESS SCHO O L Chandigarh
Pranab Takes An Agro Stand
• Due to soaring food prices and falling farm productivity, the fm has
announced the slew of measures to boost farm sector.
• He announced an increase in bank lending in farm sector as well as
interest subsidy to farmers who pay short term crop loan on time.
• To extend green revolution, he announced an allocation of Rs 400
crore.
• He also provided Rs 300 crore to promote 60,000 pulses villages in
rain fed areas for raising productivity and strengthening market
linkages.
• Another Rs 300 crores was set aside for palm oil cultivation.

10. AM ITY GLO BAL
BUSINESS SCHO O L Chandigarh
Pranab’s aim ,one arrow and
three targets
Finance minister Pranab Mukherjee stated on Monday
that this budget aimed at three key objectives:
• Signal a fresh focus on reforms
• Enable the use of technology to curb corruption and
black money
• To make agriculture more responsive to higher food
demands.