AM ITY GLO BALBUSINESS SCHO O L Chandigarh INDIAN UNION BUDGET 2011-2012 Highlights Presented by: Charu Arora AGBS
- -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
AM ITY GLO BALBUSINESS 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
AM ITY GLO BALBUSINESS 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%
AM ITY GLO BALBUSINESS 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%
AM ITY GLO BALBUSINESS 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 • Exemption withdrawn on CD/DVD drive,& writers, Flash memory, Combo drives meant for fit inside of CPU or Laptop will attract 5% of concessional excise duty .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.
AM ITY GLO BALBUSINESS 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
AM ITY GLO BALBUSINESS 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.
AM ITY GLO BALBUSINESS 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.
AM ITY GLO BALBUSINESS 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.