Budget 2011: CA Anshuma Rustagi

CA Anshuma Rustagi

1.       GST in 2012 -  IT infrastructure to be laid down by NSDL - Pilot Project in 2011 – 13 states to adopt GST.

2.       Service tax refunds for exporters to be made easier. Tax Free receipts of services by exporters to be put into place.

3.       New Companies Bill to be introduced in this session of the Parliament.

4.       Income Tax exemption limit increased from 1,60,000 to 1,80,000 – individual tax payers

5.       Income Tax exemption limit increased from 2,40,000 to 2,50,000 – for senior citizen above 65 years of age

6.       Income Tax exemption limit increased to Rs 5,00,000 – for individual tax payers above 80 years of age

7.       Surcharge payable by companies reduced to 5% from 7.5%

8.       MAT increased to 18.5% from 18%

9.       Additional Rs. 20,000 investment in long term infrastructure bonds sop to continue

10.   15% tax on dividend recd by Indian company earned from foreign subsidiary

11.   Scientific Research Expenditure – contribution to National Laboratory etc  – weighted deduction increased from 175% to 200%

12.   Central Excise Duty to remain at 10%

13.   SEZ companies to come under MAT

14.   Service Tax to remain at 10%

15.   New services to be taxed

a.       AC Restaurants serving liquor – with 75% abatement

b.      Hospitals with more than 25 beds having AC – with 50% abatement

c.       Diagnostic Test Centres – with 50% abatement

d.      Government Hospitals not to be subject to service tax

e.      Air Travels to be subject to service tax

f.        Life insurance companies to pay service tax on investment activities

g.       Legal services subject to service tax

16.   Input and Input services to be defined more clearly

17.   Allocation of CENVAT credit between exempt and taxable services to be rationalized