Budget Highlights

Following are the highlights of Budget 2011 – 2012:

Positive from Budget 2011 – 2012

· Senior Citizen Age Limit reduced from 65 years to 60 years for Income Tax purposes

· The green orientation of the budget is a welcome positive

· Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent

· Direct investment in Indian Mutual Funds by any foreigner is a big move

· MFs allowed to raise money from foreign investors is pathbreaking

· Budget is positive for equity markets

· Lower fiscal deficit target is commendable

· No import duty on ship parts positive for SCI

· Tax exemption limit for senior citizens raised to Rs 2.5 lakh from 2.4 lakh

· Basic food and fuel and precious stones, gold and silver jewellery to be exempted from central excise duty

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

· LED to cost less

· Government has cut many import duties to check inflation

· No further rollback of 2008 stimulus

· Direct cash subsidy for poor on fuel, fertilizers by March, 2012

· Category for ‘very senior citizen’ positive for rich

· Steel prices to come down

· ICICI Direct: Unchanged excise is positive for auto, OEMs

· FY 11 revenue deficit at 2.1%, sentiment positive says Nirmal Jain

· Tax exemption limit for individuals increased from Rs 1.6 lakh to Rs 1.8 lakh

· Exemption limit for women remains the same at Rs 2,40,000.

· For senior citizens above 80, the tax exemption limit has been raised to Rs 500,000 (Super senior citizens)

· For senior citizens, tax exemption limit increased to Rs 2,50,000 (Age 60+)

· Priority home loan limit upped from Rs. 20 lakh to Rs. 25lakh

Negatives of the Budget 2011 – 12

· Health Check-Ups in Private hospitals to become expensive

· EXPENSIVE: International Air Travel

· EXPENSIVE: Domestic Air Travel

· Tax on life insurance service providers could be negative for insurance companies

· Travel, Healthcare to become expensive due to increased service tax

· Lack of FDI in retail was a disappointment

· New service tax to hurt companies in hospitality

· Hike in export duty on Iron Ore is a negative

· Air travel to cost more

· Branded clothes may cost more

· Rise in MAT to hurt RIL, GVK Power, telcos

· FY 11 fiscal deficit above estimates, negative

· Divestment but no privatization is timid

· Doubled anganwaadi wages with a check on absenteeism not good

Source: Fwd Email

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