HIGHLIGHTS OF UNION BUDGET 2011-12

·          I-T exemption limit raised to Rs 1.80 lakh from Rs 1.60 lakh .

·          Exemption for senior citizens raised to Rs 2.5 lakh

·          Tax under women slab unchanged.

·          Tax exemption raised to Rs 5 lakh for senior citizens of 80 years.

·          To increase service tax on air travel

·          Excise and customs duty proposals to result in the net gain of Rs 7,300 crore.

·          Export duty rates on iron ore unified and kept at 20% ad valorem.

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

·          Basic customs duty on raw silk reduced from 30 to 5 per cent

·          Excise and customs duty proposals to result in the net gain of Rs 7,300 crore

·          Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.

·          Peak rate of customs duty maintained at 10% in view of the global economic situation.

·          Customs duty exemptions for hybrid auto parts.

·          Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.

·          Standard rate of central exercise duty maintained at 10%.

·          Central government debt in proportion to GDP will be 44.2% in 2011-12.

·          20% export duty on all grades of iron ore.

·          Basic customs duty reduced on certain textile products

·          No change in service tax rate of 10%.

·          No change in central excise duty.

·          Plan to levy 1% on 130 consumer items.

·          Revenue deficit fixed at 2.3 per cent in revised estimates of 2010—11 and 1.8 per cent in 2011—12,

·          Total plan expenditure will go up 100 per cent in nominal terms in the next year

·          15% tax on dividend for Indian cos from foreign unit.

·          Direct Tax proposals result in expenditure of Rs 11,500 cr.

·          To reduce surcharge on domestic companies to 5% from 7.5%

·          MAT rate hiked to 18.5% from 18%.

·          MAT on developers in SEZs to be levied.

·          Fiscal deficit revised to 5.1% from 5.5% for FY'11

·          Total expenditure raised by 13.4% at Rs 12.57 lakh cr over budget estimates

·          Gross tax receipts estimated at 9.32 lakh cr for FY 2011-12

·          Bill to amend India Stamp Act soon.

·          Budget allocation of Rs 100 cr for Ladakh and Rs 150 cr for Jammu for implementation of projects identified by taskforce

·          Old age pension to persons of over the age of 80 raised from Rs 200 to Rs 500

·          Health allocation up by 20% to R 27,600 cr.

·          Rs 9- lakh ex-gratia for defence personnel for 100% disability fighting Left-wing extremism.

·          To set up 15 more mega food parks.

·          Remuneration of anganwadi workers raised from Rs 1,500 to Rs 3,000 per month. Helpers to get Rs 1,500 from Rs 750

·          Tax free bonds of Rs 30,000 cr to be issued for infrastructure development. This will cover Warehousing Corporation, NHAI, IRFC and Hudco.

·          Allocation under Rashtriya Krishi Vikas Yojana to be raised from Rs 6,755 crore in the current year to Rs 7,860 crore.

·          Rs 50 cr grant to Aligarh Muslim University centres in Murshidabad in West Bengal and Malappuram in Kerala.

·          Rs 200 cr for environmental remediation programme.

·          Age for pension eligibility reduced from 65 years to 60 years under Indira Gandhi Yojana scheme

·          To move insurance, pension and banking bills in Parliament

·          Rs 500-cr for National Development Fund.

·          Rs 400-cr as one-time grant for IIT-Kharagpur.

·          Move to set up State Innovation Councils underway.

·          Allocation to education sector raised to Rs 52,000 cr

·          Scholarship scheme for SC/ST students in classes iX, X.

·          Increase in allocation to higher education

·          Increase in remuneration for Anganwadi workers from Rs 1,500 to Rs 3,000 per month.

·          Plan 17% increase in social sector spending.

·          To introduce Food Security Bill

·          Tax free bonds of Rs 30,000 cr to be issued for infrastructure development. This will cover Warehousing Corporation, NHAI, IRFC and Hudco.

·          Fertiliser industry to be included under infrastructure category.

·          New companies bill to be introduced.

·          GoM to be set up to deal with corruption

·          Five-fold strategy to deal with black money.

·          Mega cluster for leather products to be introduced.

·          Existing interest subvention scheme on short term farm loans at 7 % interest to continue.

·          Self-assessment in customs to be introduced.

·          Credit flows to farmers raised from Rs 3.75 lakh crore to Rs 4.75 lakh crore.

·          Constitution Amendment Bill for introduction of GST in this session.

·          Goods and Services Tax Bill this year.

·          Direct Taxes Code Bill likely to be passed by Parliament next financial year after getting Standing Committee report.

·          Public Debt Management Agency Bill in the next fiscal.

·          Indian mutual funds to get direct access to foreign markets; FIIs to be allowed to invest in MFs.

·          To liberalise FDI policy further.

·          To extend infra tax breaks to fertiliser sector.

·          To set up microfinance equity fund.

·          Government to move towards direct cash transfer of cash subsidy as regards kerosene, LPG and fertilisers from March 2012 for BPL in view of large diversion.

·          3% interest subvention to farmers who repay in time.

·          Nabard capital base to be increased by infusing Rs 10,000 cr

·          Rural housing fund increased to Rs 3,000 cr

·          Banks asked to step up lending to agriculture.

·          Allocation under Rashtriya Krishi Vikas Yojana to be raised from Rs 6,755 crore in the current year to Rs 7,860 crore.

·          Budget proposes to raise housing loan limit from Rs 20 lakh to Rs 25 lakh for priority sector lending.

·          Allocation for farm development hiked to Rs 7,860 cr.

·          Rs 300 cr proposed to promote production of cereals.

·          Indian micro-finance equity with SIDBI to be formed at Rs 100 crore.

·          Rs 6,000 cr to be given to public sector banks to maintain capital-to-risk assets ratio norms

·          RBI to bring in new guidelines for banking licences.

·          Aiming Fiscal deficit of 3% by fiscal 2014

·          Central electronic registry to reduce fraud cases.

·          FII investment limit for infra corporate bonds hiked to $40 billion.

·          Discussions on to further liberalise FDI policy.

·          Preparation of GST rollout in final stages.

·          Microfinance equity fund of Rs 100 cr proposed.

·          Govt committed to hold 51% in PSUs.

·          Rs 3,000 cr to Nabard for handloom societies.

·          Women self-help group development fund to be set up.

·          Direct transfer of subsidy for kerosene.

·          Goods and Services Tax Bill to be introduced in Parliament this year.

·          Direct Tax Code Bill likely to be passed by Parliament next financial year after getting Standing Committee report.

·          Disinvestment target at Rs 40,000 cr.

·          Direct Tax Code from April 2012.

·          SEBI-registered MFs to be allowed direct access to foreign funds.

·          Expect RBI to moderate inflation.

·          Public Debt Management Agency Bill to be introduced next financial year.

·          Current account deficit and average inflation in 2011-12 likely to be less than current year.

·          FDI policy review done in Sept 2010.

·          Economic growth in 2011-12 likely to be 9 per cent.

·          Admits large-scale diversion of kerosene.

·          Introduction of DTC will be a watershed moment.

·          Debt managment bill to be introduced.

·          Constitutional Amendment Bill on GST to be introduced.

·          Expect agri sector to grow at 5.4% in 2011.

·          Growth in 2010-11 broad-based.

·          Economy resilient to shocks.

·          RBI measures will further moderate inflation.

·          GDP estimated growth at 8.6% in real terms.

·          New dynamism in rural economy.

·          Core inflation in check.

·          Current account deficit is at 2009-10 levels, and is a matter of concern.

·          Huge difference in wholesale and retail prices not acceptable.

·          Total food inflation down from 20.2 per cent last year to 9.3 per cent in Jan

·          Revival in private investment should be sustainable.

·          Service growing in double digits.

·          Need to reconcile legitimate environmental concerns with developmental needs.

·          Food Inflation has declined by half, but still a matter of concern.