Budget Kritika

8/6/2019 Budget Kritika

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Presented By: Kritika Joshi

Dated: 05th March 2011


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What is Budget?

Highlights of This budget


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To me, the Budget is a simple statement of income and

expenses while making plans for the future. The future plans

are a set of ideas and their execution is a totally different

matter.

A budget is a financial document used to project future

income and expenses. The budgeting process may be carried

out by individuals or by companies to estimate whether the

person/company can continue to operate with its projected

income and expenses.


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Highlights of Budget 2011 2012.


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Dearer

-Legal Services

-Healthcare in

top end Pvt.hospitals.

-Branded Cloths

-Gold

-A/c

restaurants

serving Liquor

-Hotel Services

-Printers

-Paper-Soap

-Steel-Diapers &

Sanitary napkins-Homoeopathic

Medicines-Yarn/raw silk

-Mobile Phones-Agarbatti

-Solar Lantern,

LED Lights

-Battery Driven-Vehicles

-Agriculturemachinery

Cheaper


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DIRECT TAXES

Corporate tax

The Direct Taxes Code is likely to be

effective from 1 April 2012.

The Corporate tax,Firms,Localauthority, Co operative Societies rate

remains unchanged.

The basic rate of MAT increased to

18.5% from 18 %.

The surcharge for domestic companies

reduced to 5% from 7.5 %. The surcharge Non domestic

companies reduced to 2 % from 2.5 %.

NEW INCOME-TAX return form called

Sugam to be introduced for small

business.

Salary earners having an income of lessthan ` 5 lakh is exempted for filingincome tax return from this year.

Provision fortax-free infrastructure

bonds extended by 1more year.


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DIRECT TAXES

Corporate tax

TAX HOLIDAY for IT companies finally ends

Levy MAT on developers of SEZ and units

operating in them.Levy Alternative Minimum Tax (AMT) in

the case of Limited Liability partnerships

at 18.5%

Money market and debt funds will pay a

higher dividend Distribution tax (DDT) for

investment made by firms.DDT will rise to 30% from 25% but stay

unchanged at 12% for individual investors.

The TDS structure & rates remains

unchanged


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INDIRECT TAXES

Central excise

Central Excise Duty to be maintained as 10% only (un changed).

Nominal Central Excise Duty of 1 % without Cenvat credit facility is being

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 levy at unified rate of 10 per cent.

Labelled jewellery and Precious metals attract 1% excise duty.

Excise duty on sanitary napkin, baby & clinical diapers and adult diapers

is being reduced from 10% to 1% with no cenvat credit. Concessional rate of excise duty for Hydrogen / hybrid vehicle. Exemption withdrawn on HD drive, CD/DVD drive,& writers, Flash

memory, Combo drives meant for fit inside of CPU or Laptop will attract

5% of concessional excise duty .


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INDIRECT TAXES

Service Tax

Service tax rate remains unchanged at 10 percent as a pre-cursor to GST.

Legal Cases will also become a costly affair to cover all legal

consultations, except individual to individual ,under service tax net. Hotel accommodation in excess of ` 1,000 per day will come under the

ambit of tax ,although there will be an abatement of 50%.

service provided by air conditioned restaurants that have license to serve

liquor added as new services for levying Service Tax at 3- 5%. After an

abatement of 70%.

Tax on all services provided by hospitals with 25 or more beds with facilityof central air conditioning at the rate of 5%.

Service Tax on air travel raised from ` 100 to ` 150 in the case of

domestic air travel and `500 to `750 on international journeys by

economy class.

The domestic air travel on higher classes will be taxed at the standard

rate of 10% . Services provided by life insurance companies in the area of investment

and some more legal services proposed to be brought into tax net.


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INDIRECT TAXES

Custom Duty

Basic customs duty on agricultural machinery reduced to 4.5 per cent

from 5 per cent.

Basic customs duty on raw silk reduced from 30 to 5 per cent. Basic customs duty on solar lantern or lamps reduced from 10 to 5%.

CVD exempted fully on LEDs used for manf of LEDs light & fixtures.

Fully exemption from basic custom duty is being extended battery

charger, hands free, head phones and PC connectivity cable of mobile

handset including cellular phones.

Basic customs duty on bamboo used for manf of agarbattis is beingreduced from 30% to 10%.

The government has added a fixed excise duty of `160 per tonne on

cement and reduced custom duty on petcoke and gypsum, key inputs for

the sector.


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INDIRECT TAXES

Goods AndService Tax

GST proposed to be rolled out from April 2012.

Several proposals under the existing tax regime should facilitate a moveto wards GST:

Focus on building robust IT infrastructure. Further rationalization of rates under Excise and Customs.

Central sales tax

No Changes in CST act 1956.


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THANK YOU

Documents

Budget Kritika