Asia Bizz: The Indian Union Budget 2011 has been announced and the major relief this year goes in the Income Tax filing. As per the highlights of the latest budget, the Income Tax compulsion limit has been raised to Rs.1.80 lakh (from the previous 1.60 lakh) and the much discussed Direct Tax code has been discussed. We have a few highlights in context of this year’s Indian budget.
- Custom duty on various products have increased substantially and service tax on air travel has become dearer.
- Hybrid vehicles and its auto parts will witness deduction on custom duty, which is quite a relief.
- Iron ore exports shall be laden with 20% export duty, it includes all grades in the metal.
- The Central Government debt is 44.2% in proportion to the country’s GDP, and central exercise duty has seen no rise in it leverage.
- Complete tax exemption until Rs.5 lakhs for senior citizens up to the age of 80 years, but tax slab for women has remained unchanged. At the same time, the exemption for senior citizens (above 60 years) has been increased to Rs 2.5 lakh.
- Surcharge on domestic companies too has been lowered to 5%, in addition to this, there is a proposition to set up 15 mega food parks in the country.
- Some respite for school kids in class IX and X of India’s SC/ST students, is the newly introduced Scholarship scheme.
- Introduction of new bills this year such as – Goods and Services Tax Bill, New Companies Bill, Food Security Bill, Public Debt Management Agency Bill, a new bill to amend the Indian Stamp Act; while the introduction of the much hyped Direct Tax Code is to be done in 2012.
- There were also no changes in the service tax rate of 10%, nor was there any change in central excise duty.