Monday, February 28, 2011

Key Points - Budget 2011


Policy

 

Focus on - Moderate taxes and easier collections

DTC - Government committed to DTC introduction from 1 April 2012 – Inputs from Parliamentary Standing Committee to be incorporated soon in the bill

Tax free bonds of Rs 30,000 crores for infrastructure sector

Focus on E-Governance through Online tax returns, online payment of taxes, tax refunds, TDS  returns

Separate online gateways for tax return filing and status of return and refunds

 

Individuals

Salary tax returns not required when TDS is made in certain case

Increase in individual tax slabs to Rs 180,000 – benefit of Rs 2000 per tax payer

Reduce qualifying age to 60 years for senior citizens exemption and value increase to Rs 250,000 

 Rs 500,000 basic exemption for citizens of above 80 years of age

 

 

Corporates

 

Corporate surcharge reduced to 5% (reduction by 2.5%)

MAT increased to 18.5% (increase by 0.5%)

MAT introduced on SEZ developers

Foreign dividend – resident investor – FY 2010-11 – 15% special tax rate on dividend income of foreign subsidiaries

 Transactions with "specified jurisdictions" to be restricted

 

Net effect of direct tax proposals - Estimated Tax Revenue loss – Rs 11,000 crores – for FY 2010-11

 

 


Posted By : S Rahul 

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