2011 Union budget of India

Government budget January 2014 November 2020 Union Budget of India 2011 Emblem_of_India.svg 100px Emblem of India India 2010 Union budget of India 2010 2012 Union budget of India 2012 28 February 2011 Pranab Mukherjee http://indiabudget.nic.in/ The 2011 Union Budget of India was presented by Pranab Mukherjee, the Finance Minister of India on 28 February 2011.http://www.thehindu.com/business/article1497462.ece https://web.archive.org/web/20110303064059/http://www.thehindu.com/business/article1497462.ece dead 3 March 2011 Business News : Growth, reform-oriented: Manmohan The Hindu 28 February 2011 1 March 2013 This budgetary proposals came into effect from 1 April 2011 to 31 March 2012. Highlights Some salient features:http://indiabudget.nic.in/index.asp Union Budget & Economic Survey Indiabudget.nic.in 1 March 2013 https://web.archive.org/web/20110902090237/http://www.indiabudget.nic.in/index.asp 2 September 2011 dead http://timesofindia.indiatimes.com/union-budget-2011/Budget-2011-Air-travel-eating-out-become-dearer/articleshow/7592516.cms Union Budget 2011: FM pushes for affordable homes; full tax rebate to builders The Times of India 1 March 2013Press Trust of India http://www.thehindu.com/business/Economy/article1497339.ece?homepage=true https://web.archive.org/web/20110629131901/http://www.thehindu.com/business/Economy/article1497339.ece?homepage=true dead 29 June 2011 Business / Economy : IT limit raised, senior citizen age limit reduced The Hindu 28 February 2011 1 March 2013Gangopadhyay Abhrajit https://www.wsj.com/articles/SB10001424052748704288304576171603657164940 Indian Budget Reins in Spending Increases - WSJ.com Online.wsj.com 1 March 2011 1 March 2013http://timesofindia.indiatimes.com/union-budget-2011/Highlights-of-Union-Budget-2011-2012/articleshow/7592642.cms Highlights of Union Budget 2011–2012 The Times of India 1 March 2013 Individual income tax exempt slab increased from 160,000 to 180,000 Overall social sector spending up by 17%, education spending up by 24% Direct transfer of subsidy for BPL people for kerosene and LPG. Other government provided subsidies on food, electricity to continue Allow foreign investment in SEBI-registered mutual funds Defence budget hiked to 1640 b yes FII investment in corporate bonds raised to US$40 billion Tax free bonds of 300 b yes for infrastructure building in roadways, railways 60 b to Public sector banks to maintain CRAR (Capital to Risk Weighted Assets Ratio) Women SHG development fund to be set up Rural Infrastructure Development fund to be raised 180 b yes 30 b yes to NABARD for textile development 15 mega food parks for vegetables 9 billion towards pulses, protein production 107 cold storage projects approved to minimise food wastage. Cold storage to be recognised as infrastructure sub-sector National Mission for Electric and Hybrid vehicle to be launched Self-assessment in customs to be introduced Seven mega leather clusters will be set up – Jodhpur to have handicraft mega cluster 1608070 m yes for food security. This forms 36 per cent of budget allocation 580 b yes for various schemes on rural development Telecom connectivity to all panchayats Anganwadi workers will get higher remuneration of 3000 per month, 1500 for Anganwadi helpers 520570 m yes allocated for education 210 b yes for primary education to implement free and compulsory education for children 5 billion+ to various universities across the country 5 billion for National Skill Development Fund Eligibility of old age pension for BPL reduced to 60 years. Pension amount for people aged above 80 years increased to 500 10 b yes for Judiciary Caste based census will be carried out as a separate exercise in June 2011 80 years above will come under very senior citizen – a new category with tax exemption up to 500,000 MAT increased to 18.5% Concessional excise duty of 10% for hybrid vehicles Customs duty on solar lanterns reduced to 5% 1% central excise duty on 130 items (previously exempted from central excise) entering the tax net. Taxation Main tax-related changes: The basic exemption limit in the case of individuals increased from 160,000 to 180,000. However, there is no increase in basic exemption limit in the case of Resident Women who is below 60 years at any time during the previous year. The qualifying age limit for senior citizens has been lowered from 60 years to 65 years and increased the current exemption limit under two categories. Category −1 – Age of Individual – 60 years or more but less than 80 years at any time during the previous year. The basic exemption limit is increased from 240,000 to 250,000. Category – 2 – Age of Individual beyond 80 years or more at any time during the previous year. The basic exemption limit is 500,000. No need to file returns if the Income is less than or equal 500,000. In the case of domestic companies the surcharge has been reduced from 7.5% to 5%. In the companies other than domestic companies the surcharge has been reduced from 2.5% to 2%. The definition of charitable purpose u/s 2 (15) includes "the advancement of any other object of general public utility". The monetary limit in respect of such activities has been enhanced from 1000,000 to 2500,000. The amount paid by an assessee as an employer by way of contribution towards pension scheme, as referred to in sec 80CCD(2) on account of an employee to the extent it doesn't exceed 10% of the salary of employee in the previous year, shall be allowed as a deduction u/s 36 in computing the income under the head profit and gains of business or profession. The Indian company which receives foreign dividend from foreign subsidiary company such dividend is taxable at the 15% as against 30% plus applicable surcharge. The rate of MAT is increased to 18.5% from the existing rate of 18% of such book profit. Minimum Alternative Tax has been introduced for Limited Liability Partnership (LLP) in line with MAT on companies with effect from the Assessment Year 2012–2013. The Government exempts assesses having no other income other than salary from furnishing the return of income by notification. The proposed amendment shall be effective from 1 June 2011. It is proposed to omit the requirement of quoting of Documentary Identification Number in notices / order / correspondences issued by Income tax department. The SEZ developers are required to pay dividend distribution tax on dividends declared / distributed on or after 1 June 2011. The deduction u/s 80CCF to investment in notified long term infrastructure bonds extended for the A.Y. 2012–13 also. Liaison offices of a company will be required to file Annual Information in the prescribed form within the 60 days from the end of the financial year. The tax holiday for power sector has been extended for further period of one year i.e. up to 31 March 2012. Service tax The following two new services have been proposed Services by air conditioned restaurants having licence to serve liquor; and short term accommodation hotels / inns / clubs / guest houses etc. The monetary limit for adjustment of excess service tax paid is increased from 100,000 to 200,000. The penalty for delayed payment of service tax u/s 76 has been reduced from 2% to 1% per month or 100 per day whichever is higher. The maximum penalty reduced to 50% of the tax. The rate of interest is reduced by 3% for assesses with turnover of up to 6 million. The maximum penalty for delay in filing of return increased from 2,000 to 20,000. References External links http://www.finmin.nic.in/index.asp Category:Union budgets of India Category:2011 in Indian economy India