FINANCE BUDGET 2011 -12
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FINANCE BUDGET 2011-12
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ANAND S. AWAR(MBA) RACHAPPA(M.COM) RAJEEVKUMAR(MBA) SHIAVANAND(M.COM) RAJKUMAR(MBA) SHARANRAJ(M.COM)
SHIVAKUMAR(MBA)VIVEKKUMAR(MBA)
FINANCE BUDGET 2011-12
- AN ANALYSIS ON TAX PROPOSALS
BY
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FINANCE BUDGET 2011-12
AN ANALYSIS
AGENDA
Direct Tax
Indirect Tax
Agriculture and Related Sectors Manufacturing Sector Environment Infrastructure Other Proposals Service Tax
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FINANCE BUDGET 2011-12
AN ANALYSIS
Exemption limit for the general category of individual taxpayers
enhanced from 1,60,000 to 1,80,000 giving uniform tax relief of
2,000.
Exemption limit enhanced and qualifying age reduced for senior
citizens from 65 to 60.
Higher exemption limit for Very Senior Citizens, who are 80 years or
above.
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Annual Income Income Tax Applicable For
0-5,00,000 Nil Very Senior Citizen
5,00,001-8,00,000 20% Very Senior Citizen
Above 8,00,000 30% Very Senior Citizen
FINANCE BUDGET 2011-12
AN ANALYSIS
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Current Surcharge of 7.5% on domestic companies proposed to bereduced to 5%.
Rate of Minimum Alternative Tax proposed to be increased from 18% to
18.5% of book profits.
Tax incentives extended to attract foreign funds for financing of
infrastructure.Additional deduction of 20,000 for investment in long-term
infrastructure bonds proposed to be extended for one for year.
Lower rate of 15% tax on dividends received by an Indian company
from its foreign subsidiary.
All small tax payers and small businessowners with revenue up to Rs.60 lakhs are
exempt from audit .
FINANCE BUDGET 2011-12
AN ANALYSIS
OHER PROPOSALS;
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Invest ent li nk e e cti n t si ness evel i ng ff r le
si ng .
Wei ghte e cti n n y ents e t N ti nal Labor at ories,
U ni versi t i es and Inst i t tes o f Technol og y t o be enhanced t o %.
yste o f collect ion o f in f or at ion fr om f oreign t ax j r i sdi ct ions t o
be streng t hened .
mpl o yer¶s contr ibut ion t o pension scheme t o be all owed as a
d educt ion . Benef i t o f invest ment l ink ed d educt ion e x tend ed
t o businesses engag ed in t he pr oduct ion
o f fert i l i zers.
FINANCE BUDGET 2011-12
OHER PROPOSALS;
AN ANALYSIS
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INDIRECT TAXES
To stay on course for transition to GST.
Central Excise Duty to be maintained at standard rate of 10%.
Reduction in number of exemptions in Central Excise rate
structure.
Nominal Central Excise Duty of 1% imposed on 130 items
entering in the tax net.
Lower rate of Central Excise Duty enhanced from 4% to 5%.
Optional levy on branded garments or made up
proposed to be converted into a mandatory levyat unified rate of 10%.
Peak rate of Custom Duty held at its current level.
FINANCE BUDGET 2011-12
AN ANALYSIS
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AGRICULTURE AND RELATED SECTORS:
S cope o f e x empt ions fr om x ci se Duty enl ar g ed t o incl ud e e uipments
need ed f or st or ag e and warehouse f aci l i t i es on ag r i cult ur al pr oduce.
Basi c ust om Duty reduced f or s peci f i ed ag r i cult ur al machinery fr om
% t o . %.
Basi c ust om Duty reduced on mi cr o-i rr igat ion e uipment fr om
7 . % t o %.
De-oi led r i ce br an cak e t o be f ully e x empt fr om basi c ust om Duty.
xport Duty o f % t o be levi ed on i ts e xport.
FINANCE BUDGET 2011-12
AN ANALYSIS
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MANUFACTURING SECTOR
Basi c ust om Duty reduced f or var ious i tems t o encour ag e domest i c
val ue addi t ion vi s-à-vi s imports , t o remove duty inversion and
pr ovid e a level pl a ying f i el d t o t he domest i c industry.
Rate o f xport Duty f or all ty pes o f i r on ore enhanced at % ad
val orem . F ull e x empt ion fr om xport Duty t o i r on ore pellets.
Basi c ust om Duty on t wo cr i t i cal r aw mater ials o f cement industry,
namely petcok e and g y psum i s pr oposed t o be reduced o . %.
ash di s pensers f ully e x empt fr om basi c ust om
Duty.
FINANCE BUDGET 2011-12
AN ANALYSIS
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F ull e x empt ion fr om basi c ust oms Duty and a concessional r ate o f entr al
x ci se Duty e x tend ed t o batter i es imported b y manu f act urers o f electr i cal vehi cles.
oncessional x ci se Duty o f per cent t o vehi cles based on F uel cell technol og y.
x empt ion g r anted fr om basi c cust om duty and s pecial D t o cr i t i cal
parts/ assembl i es need ed f or ybr id vehi cles.
Reduct ion in x ci se Duty on ki ts used f or conversion o f f ossi l f uel vehi cles int o H ybr id vehi cles.
x ci se Duty on L Ds reduced t o per cent and s pecial D being f ully
e x empted .
Basi c ust oms Duty on sol ar l anter n reduced fr om
t o per cent.
F ull e x empt ion fr om basi c ust oms Duty t o r ud e P al m S tear in used in manu f act ure o f l aund ry soap .
F ull e x empt ion fr om basi c x ci se Duty g r anted t o
en zyme based pre par at ion f or
FINANCE BUDGET 2011-12
AN ANALYSIS
ENV I NMENT
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INFRASTRUCTURE
P ar allel x ci se Duty e x empt ion f or domest i c suppl i ers
pr oducing capi t al good s need ed f or e xpansion o f e xi st ing
me ga or ultr a me ga pr o jects.
F ull e x empt ion fr om basi c ust oms Duty t o bio-as phalt and s peci f i ed machinery f or appl i cat ion in t he constr uct ion o f
nat ional highwa ys.
FINANCE BUDGET 2011-12
AN ANALYSIS
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FINANCE BUDGET 2011-12
AN ANALYSIS
S cope o f e x empt ions fr om basi c ust oms Duty f or wor k o f art and ant iqui t i ese x tend ed t o apply f or e xhibi t ion or di s pl a y in pr i vate art galler i es open t o t he
g ener al publ i c.
x empt ion fr om Import Duty f or s pares and capi t al good s requi red f or ship re pai r
uni ts e x tend ed t o import b y ship owners.
oncessional basi c ust om Duty o f per cent and D o f per cent avai l able
t o news paper est abl i shments f or high s peed pr int ing presses e x tend ed t o mai lr oom
equipment.
J umbo r olls o f cinemat og r aphi c f i l m f ully e x empted fr om D b y pr oviding
f ull e x empt ion fr om x ci se Duty.
Out r ight concession t o f act ory-bui lt ambul ances fr om x ci se Duty.
Rel i ef measures pr oposed f or r aw pi st achio , bamboo f or agar batt i , l act ose f or t he manu f act ure o f homoeopat hi c medi cines, sani t ary napkins, bab y and adult
diapers.
Pr oposals rel at ing t o ust oms and entr al x ci se est imated t o result in a net
revenue gain o f ` 7 ,3 cr ores.
OTHER PROPOSALS
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