Budget 2011 - Highlights

Old tax exemption limit (Rs.)	New tax exemption limit (Rs.)	Category
160000	180000	Men
190000	190000	Women
240000	250000	Senior (60 yrs from 65)
240000	500000	Very senior citizens (over 80 yrs) {new category this yr}
Education cess of 2% and 1% for primary and higher education, respectively.

·        India has been projected to grow at 9% in 2011-2012.

·        The 5% rate of inflation has been projected.

·        DTC would be implemented from April 1, 2012.

·        Fiscal deficit of 5.1% is estimated in FY 11.

·        Aim to cut fiscal deficit to 4.6% in FY 2012.

·        Revenue deficit expected to be 1.8% in FY 2012.

·        An attempt will be made to bring down the fiscal deficit to 3% by 2014.

·        The surcharge on domestic companies has been reduced from 7.5% to 5%.

·        The rate of Minimum Alternate Tax (MAT) has been increased from 18% to 18.5%.

·        FIIs have been allowed to invest in MFIs.

·        The Foreign funds Investment limit in corporate infrastructure bonds has been increased four- fold to $25 billion.

·        No FDI in multi brand retail for the time being.

·        A divestment target of Rs. 40000 crores has been set.

·        There is a plan to provide Rs. 3000 crores to NABARD.

·        The rate of Service Tax has been maintained at 10%.

·        An Excise duty of 10% would be imposed on branded clothes.

·        Eating out in restaurants that serve liquor would be costlier by 3%.

·        130 items have been brought into the excise duty net for the first time with a 1% duty.

·        Private Hospitals and diagnostic tests have been brought under the service tax net, thus would cost 5% more.

·        An Excise duty of 1% is to be charged on branded jewellery.

·        The Excise duty on LED bulbs halved to 5%.

·        Service tax is expected to generate 19% higher revenue next year.

·        MAT has been imposed on Special Economic Zones.

·        RBI to sell stakes in NABARD, NHB to the government for Rs 1430 crores and Rs 450 crores, respectively.

·        The Housing loan limit for priority sector lending had been raised to Rs 25 lakhs (due to increase in prices as a result of inflation).

·        Interest subsidy of 1% has been extended to home loans up to Rs 15 lakh and property worth Rs 25 lakh.

·        Increase in overall social sector spending by 17%.

·        Spending on education and healthcare to increase by 24% and 20%.

·        The Farmer credit target has been increased to Rs 4.75 lakh crore.

·        Rs 40000 crore is to be allocated for NREGA.

·        Poor users of kerosene, cooking gas and fertilizers to get cash subsidies by March 2012.

·        The 10 year tax holiday for power projects gets a one year extension.

·        The definition of CKD (completely knocked down) units has been changed, and is expected to bring a steep hike in prices of certain cars.

·        LLPs (limited liability partnerships) to pay a tax of 18.5%. {In case of LLPs, the liability of the partners is restricted to the amount of their capital contribution, & a partner’s personal assets are not at risk, except when he is himself responsible for the claim}

·        On the budget day the stock market zoomed 499 points and then lost several points to end at a high of 122.5 points.

·        On the next day of the budget, the stock market gained 623 points, which is the biggest single day jump in 22 months.

   

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