Monday, July 6, 2009

personal income tax budget highlights 2011 2012

PERSONAL INCOME TAX EXEMPTION RAISED BY RS 10,000. For Senior Citizens exemption raised by Rs 15,000

10% surcharge on personal Income Tax removed

The Finance Minister Pranab Mukherjee has started general budget presentation at 11.00 am in the Lok Sabha on Monday.

This is the first general budget of the UPA government’s second term.

This is Pranab Mukherjee’s fourth Budget. He had presented three earlier Budgets as finance minister in the Indira Gandhi government.

But this would perhaps be his toughest job as he has to fight recessionary pressures and at the same time meet the fiscal deficit reduction targets.

Mukherjee has already stated that the focus of the government would be on aam aadmi with more employment generation schemes on the anvil.

Later Senior Officials of the Ministry of Finance will address a Post Budget Press Conference.

* No change in Corporate Tax.

* Ten per cent surcharge on personal income tax removed.

* I propose to raise by Rs 10,000 the exemption limit for women on income tax. For all others, Rs 10,000 up from Rs 1,50,000, says Mukherjee.

* Income Tax rates exemption limit to 2,25,000 to 2,40,000 for senior citizens.

* Fringe benefits tax abolished.

* Tax holidays extended by one more year.

* Commodities transaction tax abolished.

* Proposal to incentivise business. I propose to start Investment linked tax benefits in areas of agriculture and national grid, says Mukherjee.

* To further improve the efficiency of tax system, I propose to set up two authorities for advance ruling, says Mukherjee.

* Minimum Alternate Tax on book profits increased to 15 per cent from 10 per cent.

* New pension system trust exempted from security transaction tax and dividend distribution tax.

* Income tax incentives on education loans expanded to cover vocational studies after schooling.

* Small businesses up to Rs 40 lakh turnover exempted from filing advance tax returns.

* Presumptive Taxation of 8 per cent on businesses of turnover of up to Rs 40 lakh.

* IT returns to be made simpler, says Mukherjee.

* Govt to extend tax waiver on some exports to March 2010.

related tags : personal income tax budget highlights 2010 ,personal income tax budget highlights 2009, personal income tax reforms budget highlights 2011


Post a Comment

mack said...

Thanks for sharing such great post, according to me Fringe Benefit Tax has been abolished so it will help all companies and the luxury bus operators who transported passengers either interstate or intra state will now be tax free.

Madhu said...

budget higlight 2010

Lakshmi Narayana said...

Thanks for providiong the information briefly instead of with details