HIGHLIGHTS OF BUDGET 2011-2012

DIRECT & INDIRECT TAXES

1. Revenue loss from direct taxes at Rs 11,500 cr, gain from indirect taxes at Rs 11,300 cr
2. Service tax to boost revenue by Rs 4,000 cr
3. Service tax rate kept at 10 percent
4. Peak rate of customs duty maintained at 10 per cent in view of the global economic situation
5. Works of art exempt from customs when imported for exhibition in state-run institutions; this
now extended to private institutions
6. Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent
7. Service tax widened to cover hotel accommodation above Rs 1,000 per day, A/C restaurants
serving liquor, some category of hospitals, diagnostic tests
8. Standard rate of excise duty held at 10 percent; no change in CENVAT rates
9. Service tax on air travel increased by Rs 50 for domestic travel and Rs 250 for international
travel in economy class. On higher classes, it will be ten per cent flat
10. Life insurance services in area of investment now in service tax
11. No excise duty on equipment for Ultra Mega Power projects
12. No new tax exemption limits for women
13. Cut in import duties of raw material for mobile phones
14. Basic food, fuel exempted from central excise duty
15. Tax sops of Rs 20,000 on infra bonds extended by a year
16. 1% excise duty on 130 new items
17. Rs 5 lakh tax exemption limit for individuals above 80 years of age
18. SEZ to come under MAT
19. Minimum alternative tax raised to18.5% vs 18%
20. Tax exemption limit increased to Rs 2.50 lakh for senior citizens
21. Eligibile age for senior citizens is now 60 years against 65 years earlier
22. Exemption limit for individual tax payers raised to Rs 1.80 lakh from Rs 1.60 lakh
23. A new revised income tax return form 'Sugam' to be introduced for small tax papers
24. Electronic filing of TDS returns at source stabilised; simplified forms to be introduced for
small taxpayers
SPENDING, SUBSIDIES, DEFICIT, DISINVESTMENT & OTHER KEY HIGHLIGHTS

1. FY13 fiscal deficit at 43%

2. FY11 Fiscal Deficit at 51%, FY12 deficit seen at 46%
3. Revenue deficit pegged at 34%
4. Plan expenditure at Rs 414 lakh crore
5. Gross Tax Receipts at Rs 932 lakh crore, up 25%
6. Non-tax revenue Rs 1,25,000 crore
7. Tax procedures for small businesses to be simplified
8. Info exchange treaties signed with 13 tax havens
9. Banks to cover 20,000 villages for opening accounts in FY12
10. To allocate Rs 58,000 cr to Bharat Nirman projects
11. SC/ST scholarship scheme will benefit about 40 lakh students
12. Scholarships to SC/ST students in Class IX and X
13. Social projects spending outlay up 17% to Rs 16 lakh crore
14. Food security bill to be introduced this year
15. Rural broadband connectivity to be provided in 3 years
16. Task force will be formed to deal with black money
17. To allow Rs 30K crore tax-free bonds for railways, NHAI
18. Metro projects in key cities will get financial aid
19. Farm credit flow raised to Rs 475 lakh crore
20. GoM to consider issues related to environmental conflicts
21. Allocation for farm development raised to Rs 7,860 cr
22. Subvention of 3% to farmers paying loans before time
23. Allocation for farm development increased to Rs 7,860 cr
24. Short term interest to farmers will continue to be at 7%
25. Agricultural credit limit raised to Rs 4,75,000 crore
26. New companies bill to be introduced in this session
27. Rs 100 cr equity fund for MFIs
28. Rs 6,000 cr for some PSU banks to help them maintain Tier-I capital at 8%
29. To prevent fraud in loan cases, govt has set up Central Electronic Registry
30. Liberalisation of FDI policy
31. Govt commited to retain 51% holding in PSUs
32. FII allowed to invest in MF schemes
33. FII limit in corporate bonds has been raised by $20 billion
34. FY12 Divestment target at Rs 40,000 crore
35. FDI regulations consolidated into one comprehensive document
36. States to cut down fiscal deficit to 3% of Gross State GDP by 2014
37. Preparations for GST rollout in final stages, bill in current session
38. DTC comes in force in April 2012
39. Economy expected to grow at 9%
40. Food inflation at 20.2% in February