India Union Budget 2011 2012

On 28 February 2011 , Finance Minister Pranab Mukherjee presented India's 80th Union Budget for the financial year 2011-12.

Below Poverty Line (BPL) card holders will get subsidy as cash from 2012 for food grains, Gas, fuel .etc.

Senior Citizen Age has been made to 60 years for Income Tax purposes.

Tax Exemption or No Tax for Senior Citizens for income upto Rs.2,50,000. It was currently Rs 2,40,000.

There will be tax exemption for income upto Rs.1,80,000 from this financial year 2011-12 for all tax payers coming in General category. This was earlier Rs.1,60,000.

Women will get tax exemption up to Rs.1,90,000.

There will be a new Tax Slab introduced for people above 80 years. There will be tax exemption for annual income up to Rs.5,00,000.

Low Cost housing loans of Rs 15 lakhs will get 1 percentage interest subsidy where cost of house is upto 25 lakh.

Companies Bill 2009 will come into Act at replacing the old bill.

The Health Budget prepared is for Rs.26,760 crore.

Health coverage will be provided to Mahatma Gandhi National Rural Employment Guarantee Scheme holders just like it was given based on the Rashtriya Swasthya Beema Yojana.

Goods and Services Tax (GST) Amendment will be done which will make sales tax, excise duty .etc. more easy.

In Real Estate there will be measures to make changes to the high stamp duty that is being currently levied.

Special Infrastructure debt funds will be introduced to attract foreign investors.

Tax free bonds of Rs.10,000 crore each will be issued by both Indian Railways Finance Corporation (IRFC) and National Highways Authority of India Limited (NHAI).

From April 2012 the Income Tax Act will be replaced by a new Act called Direct Taxes Code (DTC).

Based on the TDC Bill from 2012-13 the tax slabs will be like this,

Rs 2 lakh to Rs 5 lakh = 10% Tax

Rs 5 lakh to Rs 10 lakh = 20% Tax

Above Rs 10 lakh = 30% Tax

Health Checkups will become expensive in hospitals.

Excise duty will be reduced to 10% for specified machinery items.

Surcharge for companies will be 5% onlyCrude palm oil which is used in sports have been exempted from customs duty.

Prices of Hybrid, electric cars,its imported batteries.etc will come down due to reduction of duty.

Branded Gold Jewelry will cost more.

Nominal 1 per cent central excise duty on 130 items entering the tax net.

Cost of LED Bulbs will be reduced.

Customs duty for agricultural machineries was reduced to 4.5%.

There will be no import duty on ship parts.

Items like Basic food, fuel, precious stones, gold, silver jewellery to be exempted from central excise duty.

Now Foreign investors can subscribe to Securities and Exchange Board of India registered Mutual funds.

They will be accepted based on KYC norms. KYC means Know Your Customer. For this , the customer should submit proofs of Identity and Address.

From 2011 April , Unique Identification of Authority of India (UIDAI) will start enrolling 10 lakh people everyday.

National Knowledge Network will be set up to link to all 1500 institutions in India.

Anganwadi workers and helpers will be given a better hike in wages.

Broadband Connection will be provided to all the Panchayaths in Rural area by 2015 which is a mission as part of the National broadband plan.

There will be increase in Foreign Direct Investment (FDI) with the new reforms announced in Budget. There will be more FDI with legislation in sectors like Insurance, Banking. etc.

There will be reforms in Bills like,

• LIC Amendment Bill
• Insurance Laws (Amendment) Bill
• State Bank of India (Subsidiary Banks) Bill
• Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act
• Pension Fund Regulatory and Development Authority (PFRDA) Bill

Before the commencement of Union Budget 2011-12 for India , many recommendations , memorandums are reaching the office of Finance Minister Pranab Mukherjee.

Union Budget 2011-2012 will be presented 28 th February 2011 by the Finance Minister Pranab Mukherjee.

The 2011 - 2012 Budget will be started in presence of 2 Houses which will be addressed by Pratibha Patil , President of India from 21st February 2011 which will end on 28th February 2011.

The presentation of Railway Budget for the financial year 2011-12 will be another main news that Indians will be focusing and it will be probably announced after Union Budget.

Rs 39,600 crore is the budget amount that is requested by Railway , while it was only 15,875 crore in 2010-11 budget.

Currently Ferro Manganese slug is categorised as a restricted item , it is requested to make it a free item.

FIEO - Federation of Indian Export Organizations has requested for giving Infrastructure Status to Hotel Industry.

Only with allowing of this condition , more hotel rooms can be easily added and special benefits claimed to special areas.

The traders and investors will be looking for a good change in Goods & Services Tax (GST).

Indian Ferro Alloy Producers' Association (IFAPA) has asked the Government to correct the Ferro Vanadium and Vanadium Pentoxide's Inverse Duty structure.

It is also requested to remove the Customs Duty on Vanadium Pentoxide, Ammonium Metavanadate.

AK Antony , Indian Defence Minister said that modernisation of Arms and Ammunition for India is necessary.

So it is expected that a good amount will be kept aside in the Union Budget for Defence.

Associated Chambers of Commerce and Industry of India (ASSOCHAM) requested the Indian government to give Tax holiday to hospitals located in the urban areas.

It is expected that the 2011 Budget will have something special for states like Kerala, Tamil Nadu, West Bengal , Assam where elections will be conducted within few months.

The Profit linked method may be changed to Investment Linked Tax Incentive methods for the Software companies.

Present Tax Exemption limit is Rs 160,000 , it is expected that it will made to Rs. 175,000 or more which will be a great move.

Common people expect that the prices of daily necessities like provisions, vegetables go down. The prices of Petrol , Diesel , LPG .etc. are also expected to become less with the coming budget , even though it is a far dream.