The exemption limit for the general category of individual tax payers has been enhanced to Rs. 1,80,000 from Rs. 1,60,000 in the General Budget 2011-12, presented by the Union Finance Minister, Shri Pranab Mukherjee in the Lok Sabha today. The measure will provide a uniform tax relief of Rs. 2,000 to every tax payer of this category, besides moving closer to Direct Tax Code (DTC) rates.
Minimum Alternate Tax :- Under the existing provisions of section 115JB(1), a company is required to pay a minimum alternate tax (MAT) on its book profit, if the income-tax payable on the total income, as computed under the Act in respect of any previous year relevant to the assessment year commencing on or after 1st April, 2011, is less than the MAT. The amount of tax paid under the said section is allowed to be carried forward and set off against tax payable up to the tenth assessment year immediately succeeding the assessment year in which the tax credit becomes allowable under the provisions of section 115JAA.
130 items brought under Tax Net with Nominal one Per Cent Excise Duty. Mandatory 10 Per Cent Levy Replaces Optional Levy for Readymade Garments
Union Finance Minister Sh. Pranab Mukherjee has announced various incentives for micro, small and medium enterprises while presenting this year’s union budget. The allotment to SIDBI for refinancing incremental lending by banks to these enterprises has been raised from Rs. 4000 Crore to Rs. 5000 Crore.
Various steps have been taken in this year’s union budget to give a boost to housing sector finance. The existing scheme of interest subvention of 1% on housing loans has been liberalized by extending it to housing loan upto Rs. 15 lakh where the cost of the house does not exceed Rs. 25 lakh from the present limit of Rs. 10 lakh and Rs. 20 lakh respectively.
Union Finance Minister Sh. Pranab Mukherjee has proposed to free all individual and sole proprietor service tax payers with a turn over to Rs. 60 lakh from the formalities of the audit. It has been observed that the number of assesses in service tax has grown manifold and a large number of them comprise individuals or sole proprietors with small turnovers.
10% Excise Duty Concession to Vehicles Based on Fuel Cell Technology Basic Customs Duty on Solar Lantern Reduced to 5% Presenting the General Budget 2011-12 here today, Shri Pranab Mukherjee, Finance Minister announced that: Full exemption from basic Customs Duty and a concessional rate of Central Excise Duty is proposed to be extended to batteries imported by manufacturers of electric vehicles. • A concessional Excise Duty of 10% has also been proposed to vehicles based on fuel cell technology.
The Union Finance Minister Shri Pranab Mukherjee while presenting the Union Budget for 2011-12 has announced that the Service Tax on Health check up or treatment imposed in 2010-11 would now be replaced with a tax on all services provided by hospitals with 25 or more beds that have the facility of central air-conditioning. Emphasising that though this Service Tax is on high-end treatment, Shri Mukherjee said that there would be an abatement of 50 per cent so that the actual burden is kept at 5 per cent of the value of service.
The Union Finance Minister, Shri Pranab Mukherjee, while presenting the Union Budget for 2011-12, has announced that the Service Tax on air travel would be raised by Rs.50 in the case of domestic air travel and Rs.250 on international journeys by economy class.
Presenting the General Budget 2011-12 here today, Shri Pranab Mukherjee, Finance Minister said that to quicken the clearance of the cargo by Customs authorities and further modernize the customs administration, it has been proposed to introduce self-assessment in Customs. Under this scheme, the importers and exporters will themselves asses their duty liabilities while filing their declarations in the EDI system. The department will verify such assessments on a selective system driven basis.
