Gireesh Bhalla : BUDGET 2011-12


1)         Exemption limit increased in some case-(a) in the case of senior citizens (60-80 years) to Rs. 2,50,000/- (b) senior citizens (above 80 years) to Rs. 5 Lakh, and (c) any individual (other than women and senior citizens) and every HUF to Rs. 1,80,000/-.

2)         Corporate surcharge has been reduced in the case of domestic companies from 7.5% to 5%.

3)         Minimum alternate tax increased from 18% to 18.5%.  Minimum alternate tax will also be payable by units in special economic zone with effect from the assessment year 2012-13.

4)         “Alternate Minimum Tax” at the rate of 18.5% of “adjust total income” introduced in the case of LLPs. “Adjusted total income” will be gross total income plus deduction claimed under section 10AA.

5) Scope of section 35AD has been extended to housing projects under a scheme of affordable housing framed by Government and production of fertilizers in India.

6)         Investment in long-term infrastructure bonds will be qualified for deduction even for the assessment year 2012-13 up to Rs. 20,000.

7)         Weighted deduction under section 35(2AA)(a) increased from 175% to 200%.

8)         Employer’s contribution to new pension scheme will not be considered for the overall monetary ceiling of Rs. 1 Lakh under section 80CCE.

9)         The terminal date of tax holiday under section 80-IA(4)(iv) has been extended for a further period of 1 year, i.e., up to March 31, 2012.

10)       Foreign dividend income of Indian Companies will be taxable at the rate of 15%

11)       Additional income-tax at a higher rate of 30% will be payable an income distributed by debts funds to a person other than individual/HUF.

12)       Salaried taxpayers (who are subjects to TDS) will be exempted from submission of income-tax return if they do not have any other income.

13)       The definition of “charitable purpose” has been amended to increase the monetary limit from Rs. 10 Lakh to Rs. 25 Lakh.

14)       Tax will be deducted at the rate of 5% by notified infrastructure debt fund on any interest payable to non-resident.

15)       Section 92C amended to provide that instead of variation of 5%, the allowable variation will be notified percentage.

16)       Tax free infrastructure bonds worth Rs. 30,000 crore will be issued.

17)       Service tax will remain at 10%

18)       Service provided by air-conditioned restaurants having a license to serve alcoholic beverages in relation to serving of food and/or beverages now taxable.

19)       Short –term accommodation provided by a hotel, inn, guest house, club or composite, or any other similar establishment for a continuous period of less than three months now taxable.