• Direct tax sops to result in Rs 11,500 cr net revenue loss
  • Investment-linked deductions for fertilisers and developers of affordable housing
  • Low withholding tax of 5% for notified infra funds
  • Foreign dividend tax rate cut to 15% for Indian companies
  • Total plan expenditure will go up 100% in nominal terms in the next year
  • Service tax unchanged at 10%
  • Extension of investment on long-term infrastructure bonds by one more year
  • Minimum alternate tax raised from 18% to 18.5% of book profits
  • Rs. 20,000 exemption for investment in infra debt funds for another year
  • Maintain standard rate of excise duty at 10 pct
  • Threshold income tax limit raised from Rs 1.6 lakh to 1.8 lakh
  • Financial Sector Legislative Reforms Commission, to be headed by former Supreme Court judge B Srikrishna, to complete its work in 24 months.
  • Propose to levy MAT on developers of SEZs
  • New category for 80 yrs and above, limit is Rs 5 lakh
  • MAT increased to 18.5 %
  • In FY12 gross tax receipts at Rs 9.32 lakh crore: FM
  • Relaxation in exit age for National Pension scheme
  • Anganwadi workers’ salary up from Rs 1500 to Rs 3,000/mnth; helpers to get Rs 1500
  • State innovations council to be set up
  • Scholarship for needy SC/ST students in class 9 and class 10
  • Rs. 54 cr each to AMU Centres
  • Budget allocation for Defence sector at more than 1.64 trln rupees
  • Allocation of Rs. 52057cr for education sector, increase of 24%
  • Health sector outlay at Rs. 26760cr, increase of 20%
  • Expect 10 lakh numbers to be generated per day from 1st Oct 2011 under UID
  • Propose 300 crore to modernise stamp and registration in states
  • Rs. 9 lakh compensation to be given to men of Defence and Central paramilitary forces for permanent disability and discharged from service
  • Budget allocation of Rs. 150 cr for Jammu for implementation of projects identified by taskforce
  • Rs. 8000 cr assigned for J&K for development projects
  • Funds of Rs. 25 cr and 30 cr for Naxal affected areas
  • Some 20 lakh Adhaar numbers given
  • To speed up justice, propose a fund of RS 1000 crore to build judicial infrastructure and develop project ethos
  • Rs. 58000 cr allocation for Bharat Nirman schemes
  • Increased outlay on social sector outlay
  • 10 existing double taxation avoidance treaties revised
  • 5-fold strategy on black money
  • 15 mega food parks to be set up
  • Jodhpur to be included for handicraft sector development
  • Delhi metro phase 3 to be taken up
  • Mortgage risk guarantee fund to be created for economically weaker sections
  • Financial assistance to ongoing metro projects
  • Rs. 3000 cr to NABARD for more credit flow
  • Increase in target credit flow to farmers
  • States must review APMC Act
  • Banks have been asked to increase lending to farmers
  • 40 lakh tonne storage capacity by FY12
  • Infrastructure status to cold storage chains
  • 24 new cold storage projects sanctioned
  • Private investment in agro processing to be increased
  • Discussions on to further liberalise FDI policy
  • 1% interest subvention for home loans up to Rs 15 lakh
  • 100 cr equity funds for micro finance companies
  • Housing loan limit raised to 25 lakh for priority sector lending
  • Bill to allow RBI to grant more banking licenses
  • FII investment in corporate bonds hiked to 40 bn USD
  • RBI guidelines for banking licenses by year-end
  • Propose to form Women self help group development fund
  • Economic growth rate expected at 8.75% to 9.25% in FY12
  • Government to introduce GST bill amendments in this session
  • Union Finance Minister aims for fiscal deficit of 3% by Financial Year 2014
  • Will move to direct tax subsidy for fertiliser and kerosene
  • Considering new fertilizer policy for urea
  • Industrial growth seen at 8.1 percent, agriculture at 5.4 percent
  • Financial Year 2012 disinvestment target is Rs 40,000 crore
  • Direct transfer of kerosene, LPG subsidy to BPL people
  • Showing the road to a simpler future
  • Food inflation down, but still a matter of concern
  • Rollout of DTC to be effective from April 1, 2002
  • Finance Minister expects current account deficit to come down next year
  • Shri Pranab Mukherjee expects RBI measures to moderate inflation
  • Union Finance Minister Shri Pranab Mukherjee begins Budget speech in Parliament

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0 responses to “Highlights of Union Budget 2011-12”


    Respected Tax Guru,

    In my opinion, The Budget 2011-12 is not impressive and not in any manner called as “Good Budget” or “Bad Budget”, on the whole the Budget disappointed me. A Large sector has been left unfolded which is likely to be amending, but uff… alias; I would like to send some advice to The Union Minister of Finance of India regarding benefit to both the sectors i.e. Corporate, Non Corporate, Individuals and Country. I would like to highlight few Sectors which is needed to be amend –
    [1] Enhancement the Limit of any Loans [Received or Repayment]from individual in Cash u/s- 266 SS and 269 T of Income Tax Act -1961 FROM THE PRESENT LIMIT [Not exceeding] the Rs. 20,000.00 [ Rs. Twenty Thousand] up to Rs.1,50,000.00[Rs. One Lac Fifty Thousand]
    [2] Enhancement and Introduce the Limit of Rebate from Net Taxable Income of Partnership Firm, Corporate, Non Corporate, Individuals u/s- 80C up to Rs.1,50,000.00 [Rs. One Lac Fifty Thousand] this way, Five Times more Funds will be available to National Treasury of Tax Rebate/Payment.
    [3] Introduce the Taxable Liability @ 02.5% of Political Parties Funds.
    [4] Introduce the Taxable Liability @ 10.5% Flat Rate on Salary and other allowances of the Member of Parliaments and Member of Legislative Assembly of Both House.Only Exemptions should be given to Hon’ble President and Hon’ble Speaker of Lok Sabha.
    [4] Introduce the Taxable Liability @ 01.5% Flat Rate to the N.G.Os.
    Above matters are in my opinion will be fruit full regarding the meet of some deficit in Budget.
    Thanking You,
    Ramesh Kumar Thakur

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