It has been suggested that this article be merged into Union budget of India. (Discuss) Proposed since February 2021.

2011 (2011) Union Budget of India
Submitted28 February 2011
Submitted byPranab Mukherjee
Submitted to2010
Websitehttp://indiabudget.nic.in/
‹ 2010
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The Union Budget of India for 2011–2012 was present by Pranab Mukherjee, the Finance Minister of India on 28 February 2011.[1] This budgetary proposals would be applicable from 1 April 2011 to 31 March 2012.

Highlights

Some salient features:[2][3][4][5][6]

Taxation

Main tax-related changes:

  1. The basic exemption limit in the case of individuals increased from 160,000 to 180,000. However, there is no increase in basic exemption limit in the case of Resident Women who is below 60 years at any time during the previous year.
  2. The qualifying age limit for senior citizens has been lowered from 60 years to 65 years and increased the current exemption limit under two categories.
  3. Category −1 – Age of Individual – 60 years or more but less than 80 years at any time during the previous year. The basic exemption limit is increased from 240,000 to 250,000.
  4. Category – 2 – Age of Individual beyond 80 years or more at any time during the previous year. The basic exemption limit is 500,000.
  5. No need to file returns if the Income is less than or equal 500,000.
  6. In the case of domestic companies the surcharge has been reduced from 7.5% to 5%.
  7. In the companies other than domestic companies the surcharge has been reduced from 2.5% to 2%.
  8. The definition of charitable purpose u/s 2 (15) includes "the advancement of any other object of general public utility". The monetary limit in respect of such activities has been enhanced from 1000,000 to 2500,000.
  9. The amount paid by an assessee as an employer by way of contribution towards pension scheme, as referred to in sec 80CCD(2) on account of an employee to the extent it doesn't exceed 10% of the salary of employee in the previous year, shall be allowed as a deduction u/s 36 in computing the income under the head profit and gains of business or profession.
  10. The Indian company which receives foreign dividend from foreign subsidiary company such dividend is taxable at the 15% as against 30% plus applicable surcharge.
  11. The rate of MAT is increased to 18.5% from the existing rate of 18% of such book profit.
  12. Minimum Alternative Tax has been introduced for Limited Liability Partnership (LLP) in line with MAT on companies with effect from the Assessment Year 2012–2013.
  13. The Government exempts assesses having no other income other than salary from furnishing the return of income by notification. The proposed amendment shall be effective from 1 June 2011.
  14. It is proposed to omit the requirement of quoting of Documentary Identification Number in notices / order / correspondences issued by Income tax department.
  15. The SEZ developers are required to pay dividend distribution tax on dividends declared / distributed on or after 1 June 2011.
  16. The deduction u/s 80CCF to investment in notified long term infrastructure bonds extended for the A.Y. 2012–13 also.
  17. Liaison offices of a company will be required to file Annual Information in the prescribed form within the 60 days from the end of the financial year.
  18. The tax holiday for power sector has been extended for further period of one year i.e. up to 31 March 2012.

Service tax

  1. The following two new services have been proposed
    1. Services by air conditioned restaurants having licence to serve liquor; and
    2. short term accommodation hotels / inns / clubs / guest houses etc.
  2. The monetary limit for adjustment of excess service tax paid is increased from 100,000 to 200,000.
  3. The penalty for delayed payment of service tax u/s 76 has been reduced from 2% to 1% per month or 100 per day whichever is higher.
  4. The maximum penalty reduced to 50% of the tax.
  5. The rate of interest is reduced by 3% for assesses with turnover of up to 6 million.
  6. The maximum penalty for delay in filing of return increased from 2,000 to 20,000.

References

  1. ^ Special Correspondent (28 February 2011). "Business News : Growth, reform-oriented: Manmohan". The Hindu. Retrieved 1 March 2013.
  2. ^ "Union Budget & Economic Survey". Indiabudget.nic.in. Archived from the original on 2 September 2011. Retrieved 1 March 2013.
  3. ^ "Union Budget 2011: FM pushes for affordable homes; full tax rebate to builders". The Times of India. Retrieved 1 March 2013.
  4. ^ "Business / Economy : IT limit raised, senior citizen age limit reduced". The Hindu. Press Trust of India. 28 February 2011. Retrieved 1 March 2013.
  5. ^ Gangopadhyay, Abhrajit (1 March 2011). "Indian Budget Reins in Spending Increases - WSJ.com". Online.wsj.com. Retrieved 1 March 2013.
  6. ^ "Highlights of Union Budget 2011–2012". The Times of India. Retrieved 1 March 2013.