Budget highlights 2011-2012|On direct tax code|Budget 2011 income tax Slab

Budget highlights 2011-2012 On direct tax code

The finance minister Finance Minister Pranab Mukherjee stated the actual direct tax code is going to be beneficial from April 1, 2012.

The Direct Tax Code Bill has been around since parliament in August a year ago.
Budget highlights 2011-2012 On Budget 2011 income tax Slab

Finance Minister Pranab Mukherjee additionally elevated the income tax Slab exemption restrict for general tax payers to Rs 1.80 lakh per year from Rs 1.60 lakh at the moment as well as launched a higher new tax slab for senior citizens of eighty years and above. He also suggested to lessen the age restrict for concern as older persons senior citizens from 65 years to 60.

Senior citizens can get tax exemption for earnings up to Rs 2.5 lakh, greater from Rs 2.4 lakh right now. According to the statement, the rise in the income tax exemption restrict for general tax payers (eliminating ladies and senior citizens) to Rs 1.8 lakh per year might result in an advantage of Rs 2,000 for all those tax payers.

At present, the overall tax payers making greater than Rs 1.6 lakhs per year are needed to pay income tax.

Presenting a new tax slab for extremely senior citizens (eighty years and above), Mukherjee stated, they’re not going to pay any tax for yearly income around Rs 5 lakh.
More budget highlights for 2011-12:Budget highlights 2011-2012

1. * Revenue gain of Rs.11,000 crore from increase in indirect taxes.
2. * Service tax payers with turnover of Rs.60 lakh exempt from government audit.
3. * Electronic filing of TDS returns at source stabilised; simplified forms to be introduced for small taxpayers.
4. * Bill to be introduced to review Indian Stamp Act.
5. * New coins carrying new rupee symbol to be issued.
6. * Direct tax reductions to result in revenue loss of Rs.11,500 crore.
7. * Rs.3.43 lakh crore of market borrowings in 2011-12.
8. * Had option to rollback indirect tax rates to 2008 levels but will maintain standard rate of central excise duty at 10 percent.
9. * Service tax to stay at 10 percent.
10. * Excise duty on hybrid car kits reduced.
11. * Works of art exempt from customs when imported for exhibition in state-run institutions; this now extended to private institutions.
12. * Expenditure in 2011-12 estimated at Rs.12,57,729 crore, an increase of 13.4 percent.
13. * Tax receipts in 2010-11 at Rs.932,440 crore, an increase of 24.9 percent; non-tax receipts at Rs.125,435 crore
14. * Tax exemption limit raised from 160,000 to 180,000; for senior citizens qualifying age reduced from 65 to 60 years.
15. * Rs.1.64 lakh crore for defence; more will be given if required.
16. * Twenty-four percent increase in educational outlay; Rs.21,000 crore for Sarva Shiksha Abhiyan.
17. * Rs.500 crore more for national skill development fund.
18. * Rs.54 crore each for AMU (Aligarh Muslim University) centres at Murshidabad and Mallapuram.
19. * Anganwadi workers salary raised from Rs.1,500 to Rs.3,000.
20. * Age for below poverty line old age pension scheme to be reduced from 65 to 60 years.
21. * Five-fold strategy against black money; 13 new double taxation avoidance agreements; foreign tax division of CTBT strengthened; strength of Enforcement Directorate increased three-fold.
22. * Close to finalising food security bill.
23. * Rs.58,000 crore for Bharat Nirman; increase of Rs.10,000 crore.
24. * Mahatma Gandhi National Rural Employment Guarantee Scheme wage rates linked to consumer price index; will rise from existing Rs.100 per day.
25. * Increased outlay on social sector schemes.
26. * Infrastructure critical for development; 23 percent higher allocation in 2011-12.
27. * Rs.30,000 crore to be raised through tax-free bonds.
28. * Food storage capacity to be augmented – 15 more mega food parks to be set up in 2011-12; of 30 sanctioned in previous fiscal, 15 set up.
29. * Cold storage facilities to be recognised as infrastructure sector.
30. * Comprehensive policy on further developing PPP (public-private-partnership) model.
31. * Farmers need access to affordable credit.
32. * Moving to improve nutritional security.
33. * Necessary to accelerate production of fodder.
34. * Number three (third consecutive budget) may be lucky for me.
35. * Women’s self-help development panel to be set up.
36. * FIIs can invest $40 billion in corporate bonds.
37. * Rs.100 crore equity fund for microfinance companies.
38. * Mortgage risk guarantee fund to be created for economically weaker sections.
39. * Housing loan limit for priority sector lending raised to Rs.25 lakh.
40. * Agriculture growth key to development: Green Revolution waiting to happen in eastern region.
41. * Growth at 8.75 percent to 9.25 percent in 2011-12.
42. * Bills on insurance, pension funds, banking to be introduced.
43. * Gap between wholesale and retail prices not acceptable.
44. * Setting up independent debt management office; public debt management bill to be introduced in parliament.
45. * Seek Lord Indra’s blessings for good monsoon.
46. * Introduction of GST will improve compliance; bill in current session; setting up strong IT network for implementation.
47. * Expenditure has to be oriented towards production of goods and services.
48. * Government committed to retaining 51 percent stake in public sector enterprises.
49. * FDI policy being liberalised.
50. * Current account deficit at 2009-10 levels.
51. * Corruption a problem we have to fight collectively.
52. * Development needs to be more inclusive.
53. * Stronger fiscal consolidation needed.
54. * Setting tone for newer, vibrant economy.
55. * Economy has shown remarkable resilience to external and internal shocks.
56. * Economy back to pre-crisis trajectory.
57. * Set pace for double digit growth.
58. * Total food inflation declined to less than 9 percent in January.
59. * Could have performed better.