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