Income Tax
• Tax collection up 15%
Income Tax proposals:• Personal Income Tax slabs for individuals relaxed
• Exemption limit enhanced from Rs 1.8 lakh to Rs 2 lakh
• Upper limit of 20% tax raised from Rs 8 lakh to Rs 10 lakh
New Slabs as follows:
• Upto Rs 2 lakh - Nil
• Rs 2-5 lakh - 10%
• Rs 5–10 lakh – 20%
• Above Rs 10 lakh – 30%
• Interest from savings account up to Rs 10,000 to be exempt from tax
• In addition to medical insurance, an additional Rs 5000 to be exempted for preventive health check-ups
• Senior Citizens exempted from filing advance tax
• Compulsory reporting of assets sold abroad
Corporate Tax
• Corporate Tax structure left unchanged
• Withholding tax on certain overseas borrowings reduced to 5% from 20%
• Cuts securities transaction tax by 20% for stock market orders
Service Tax
• Service Tax rates raised from 10% to 12%
• To bring more businesses under Service Tax net; only 17 services exempted now
• Higher Service Tax to add Rs 186.6 bn in revenue
• Changes in direct taxes to result in revenue loss of Rs 45 bn
• Government services, public transport exempted from services tax
• Standard excise rate hiked to 12% from 10%
Tax Reforms
• Advanced pricing agreement in DTC to be in Financial Bill
• New tax exemption on individual share invest with lock-in
• GST network to get operational from Aug
• GST under progress, talks on with states for drafting law
• To examine parliamentary panel report on Direct Tax Code
• Rajiv Gandhi Equity Saving Scheme launched
• Rajiv plan equity invest lock-in period to be 3 years
• Rs 50000 tax exempt for share invest in new Rajiv plan
• Tax exemption on individual share invest below a million rupees
• Tax free infra bonds Rs 600 bn to be issues FY 13
• To allow Rs 100 bn NHAI tax free bonds FY 13
• To allow Rs 100 bn IRFC tax free bonds in FY 13
• To allow Rs 50 bn HUDCO tax free bonds FY 13
• To allow Rs 50 bn SIDBI tax free bonds FY 13
• To allow Rs 100 bn power sector tax free bonds FY 13
• To okay Rs 50 bn National Housing Bank tax free bonds
• 1% loan sop plan for home loans up to Rs 2.5 mn
• Interest subvention on low cost homes extended by a year
Other Budget Highlights
• GDP to grow by 6.9% in 2011-12
• This year’s performance disappointing
• India still among front runners in economic growth
• Monetary policy was geared towards containing inflation
• Need to improve supply side of economy
• Exports grew 23 %
• Imports grew 29%
• Past year was supposed to be year of recovery
• To keep subsidies under 2% of GDP over next 3 years
• We were facing several challenges; global situation a dampener
• Industry pulled down growth in past two years
• Industry now showing signs of recovery
• Need to improve supply side of economy
• Subsidy for food security law to be fully provided
• Some subsidies inevitable
• Agriculture to services performed well
• Economy now turning around
• Manufacturing on cusp of revival
• Need to improve micro-economic environment
• Expect headline inflation to moderate in the next few months and remain stable
• Agri growth at 2.5%
• External trade growth encouraging
• India has successfully achieved diversification of import and export market
• Diversification has helped overcome global slowdown
• Current account deficit at 3.6%
• Fiscal balance has deteriorated due to increase in direct tax seepages and increased subsidy
• Expect smaller fiscal deficit in the coming year
• Concept of effective revenue deficit is being brought in as a fiscal parameter
• Crude oil prices to cross USD 115/barrel
• Need to take a close look at revenue expenditure, particularly subsidies
• Endeavour to restrict subsidy to under 2% of GDP
• Recommendation of task force under Nandan Nilekani has been accepted
• Direct transfer of fertilizer subsidy to retailer and then on to farmer to be rolled out
• Direct transfer of kerosene subsidy pilot project in Alwar, Rajasthan
• Direct subsidy transfer to be implemented in at least 50 more districts soon
• DTC to be implemented at the earliest
• The structure of GST network has been approved by EGoM
• Treasury management for CPACs has been enhanced
• Rs 30000 cr to be raised via disinvestment
• At least 51% stake will remain with the govt
• FDI in multi-band retail held in abeyance
• GST to be operational by August 2012
• Provision for advance pricing agreement included in DTC bill
• Reform in financial sector has been pursued to ensure more market intervention
• New scheme - Rajiv Gandhi equity scheme - to be introduced
• Simplifying process of IPOs
• Mandatory for companies to issue stocks over Rs 10 cr through online system
• 8 financial amendments bills to be introduced this year
• Central Know Your Customer repository would be set up
• 70,000 habitations have been provided with banking services
• Ultra small branches would be set up
• Swabhiman campaign to be extended to habitations with population of 1000 people
• 81 Regional Rural Banks have migrated to core banking
• Weak RRBs to be recapitalized for another two years
• Viability gap funding under PPP is an important factor
• Oil and gas and LNG storage and oil gas pipeline, telecom towers will also be made eligible under viability gap finding
• The first infra debt fund with a outlay of Rs 8,000 cr has been launched
• Tax free infra bonds to be raised to Rs 60,000 cr
• Coal India has been advised to sign power purchase agreements with power plants
• 8,800 km roads to be covered under NHDP
• ERCB for capex of toll system and maintenance
• ECB for working capital requirement of aviation industry for a period of 1 year with an upper cap of USD 1 bn
• Delhi-Mumbai industrial corridor has made progress
• USD 4.5 bn has come Japan for DMIC
• ECB for low cost housing
• New handloom cluster in Prakasam and Guntur districts of AP and leather cluster in Jharkhand
• Power loom mega cluster in Ichalkaranji in Maharashtra
• India opportunity venture fund to be launched
• 1% interest subvention for homes costing less than Rs 25 lakhs to continue
• RKBY under Rs 300 cr for irrigation program
• National food security mission, integrated development of pulses villages
• National mission of sustainable irrigation being taken up
• National mission on oil seed and oil palms
• Rs 500 cr for aquaculture
• Rs 10,000 cr to NABARD to refinance RRBS
• Kisan card can be operated from ATMs
• Allocation for SC/ST increased to Rs 37,113 crore
• Food security a legal entitlement
• PDS network being created using AADHAR platform
• Multispectral programs to address maternal nutrition to be rolled out in select district
• Budget OKs overseas borrowing to part-fund power projects' rupee debts
• Budget approves overseas borrowing of upto USD 1 bln for airlines' working capital needs
• Budget OKs overseas borrowing for low-cost housing projects
• To increases outlay for agriculture by 18% to Rs 202.08 bn
• India to be self sufficient in urea manufacturing in 5 years
• Foreign borrow for capex to maintain, operate toll roads
• Irrigation including damns under viability gap funding FY 13
• Irrigation, fertilizer, terminal market under viability gap funding
• To allow Rs 100 bn NHAI tax free bonds FY 13
• To allow Rs 100 bn IRFC tax free bonds in FY 13
• To allow Rs 50 bn HUDCO tax free bonds FY 13
• To allow Rs 50 bn SIDBI tax free bonds FY 13
• To allow Rs 100 bn power sector tax free bonds FY 13
• Inter ministerial panel to monitor allocated coal mines
• To OK Rs 50 bn National Housing Bank tax free bonds
• ECBs allowed to part finance rupee debt of power projects
• Hike in agri credit by Rs 1 tnh To Rs 5.75 tn next FY
• Outlay for agriculture up by 18% to Rs 202.08 bn
• Mid-Day meal scheme allocated Rs 11937 cr
• RG for empowerment of adolescent girls scheme gets 750 cr
• Rural drinking water and satiation allocated 14000 cr
• PMGSY get Rs 24000 cr
• Backward region development fund allocated Rs 12040 cr
• Development projects for drought mitigation in Bundelkhand and other select areas Rs 20000 cr
• Rs 5000 cr for developing warehousing facility
• 6000 schools to be set up at block levels and developed as model schools
• No new case of polio was reported in last one year
• New vaccine unit to be set up near Chennai
• NRHM enlarged to include iodine deficiency and vaccination
• NRHM allocated Rs 20822 cr
• National urban health mission launched
• Seven more govt medical colleges to be upgraded to AIIMS
• National Rural Livelihood Mission to provide self employment - allocation upped to Rs 3915 cr
• Interest subvention of additional 3% on loans upto Rs 3 lakhs to women self help groups - effective rate of 4%
• Credit guarantee fund for skill development
• In the eventuality of the death of the bread earner of a BPL family they will get Rs 10,000
• Rs 25 cr to Institute of Rural Management in Anand
• Rs 100 cr for Kerala agricultural University
• Rs 50 cr of Dharwad Agriculture University
• Rs 50 cr to Agri universities in Haryana, Odisha
• Indira Gandhi pension scheme beneficiaries to get Rs 300 pm as against current Rs 200
• National population registry project to be completed in the next two years
• 14 cr AADHAR number generated
• AADHAR is ready for payments under MGNERGA, pension scheme
• 82 double tax avoidance agreements have been finalized
• 17 tax info sharing agreements has been finalized
• Will table white paper on black money
• Dedicated information cells to track black money
• Allowed direct import of ATF by airlines
• Realtors can borrow from overseas for low cost home projects
• Gave Rs 40 bn in FY 13 for rural housing Vs Rs 30 bn in FY 12
• Announces 2 new handloom mega clusters
• To set up 3 technical assistance centres for textiles
• Allot Rs 700 mn for Maharashtra power loom cluster
• East Indian states produced 7 mn tones more of paddy
• Rs 5 bn pilot plan in 12 plan for geo textiles in NE
• Allot 10 bn to up kharif output in NE FY 13
• Allot 4 bn to up kharif output in NE FY 12
• Rs 5.75 tn farm credit in FY 13
• Rs 100 bn to NABRAD for refinancing RRBs
• NABARD to give rural banks Rs 100 bn for short term loans
• Allocated Rs 255.55 bn under Right to Education
• Allocated Rs 208.22 bn under rural health plan FY 13
• No new case of polio
• Credit guarantee fund proposed for poor students
• Allocated Rs 31.24 bn for secondary education
• Allocated Rs 200 bn for rural infra development in FY 13
• Allocated Rs 240 bn under rural road project
• Allocated Rs 158.50 bn for child development in FY 13
• Expect gross tax receipts at Rs 10.78 tn next FY
• Total spending Rs 14.49 tn next FY
• Expect non-tax revenue at Rs 1.64 tn next FY
• Non-Plan spending Rs 9.69 tn next FY
• Fiscal deficit 5.9% of GDP this FY
• Expect Fiscal deficit 5.1% of GDP next FY
Five focus areas this year:
• Revival of domestic consumption
• Achieve condition for revival of high growth
• Remove supply bottlenecks
• Intervene decisively to address malnutrition
• Expedite improvement in delivery systems and address black money
Farm & Food
• Agri to be on govt priority list
• To increases outlay for agriculture by 18% to RS 202.08 bn
• India to be self sufficient in urea manufacturing in 5 years
• Announces 2 new handloom mega clusters
• To set up 3 technical assistance centres for textiles
• Allot Rs 700 mn for Maharashtra power loom cluster
• East Indian states produced 7 mn tones more of paddy
• Rs 5 bn pilot plan in 12th plan for geo textiles in NE
• Allocated Rs 3 bn for FY 13 irrigation plans
• Allot Rs 10 bn to up kharif output in NE FY 13
• Allot Rs 4 bn to up kharif output in NE FY 12
• Allot 5 bn for aquaculture FY 13
• NABARD to give rural banks Rs 100 bn for short term loans
• To move bill for NABARD Act amendment
• 3% rate subvention for farmers repaying loans on time
• Rs 5.75 tn farm credit target in FY 13
• Rs 2 bn for R&D of seeds and farm research
• Allocation to farm development plan RKVY hiked to Rs 92.17 bn
• To set up govt owned irrigation promotion company
• To add 5 mn tones grain storage capacity in FY 13
• To start national food processing mission in FY 13
• Micro-irrigation allotment up 13% to Rs 142.42 bn
Financial Sector & Banks
• India Opportunity Venture Fund via SIDBI of Rs 50 bn
• To issue revised norms for banks priority sector lending
• To set up financial holding company for recapitalization of banks
• To move National Housing Bank Amendment Bill
• To move Regional Rural Bank Amendment Bill
• Rs 158.88 bn for capitalization of PSU banks in FY 13
• Propose electronic voting to up shareholder involvement
• IPOs of over Rs 100 mn to be in electronic form
• Tax collection up 15%
Income Tax proposals:• Personal Income Tax slabs for individuals relaxed
• Exemption limit enhanced from Rs 1.8 lakh to Rs 2 lakh
• Upper limit of 20% tax raised from Rs 8 lakh to Rs 10 lakh
New Slabs as follows:
• Upto Rs 2 lakh - Nil
• Rs 2-5 lakh - 10%
• Rs 5–10 lakh – 20%
• Above Rs 10 lakh – 30%
• Interest from savings account up to Rs 10,000 to be exempt from tax
• In addition to medical insurance, an additional Rs 5000 to be exempted for preventive health check-ups
• Senior Citizens exempted from filing advance tax
• Compulsory reporting of assets sold abroad
Corporate Tax
• Corporate Tax structure left unchanged
• Withholding tax on certain overseas borrowings reduced to 5% from 20%
• Cuts securities transaction tax by 20% for stock market orders
Service Tax
• Service Tax rates raised from 10% to 12%
• To bring more businesses under Service Tax net; only 17 services exempted now
• Higher Service Tax to add Rs 186.6 bn in revenue
• Changes in direct taxes to result in revenue loss of Rs 45 bn
• Government services, public transport exempted from services tax
• Standard excise rate hiked to 12% from 10%
Tax Reforms
• Advanced pricing agreement in DTC to be in Financial Bill
• New tax exemption on individual share invest with lock-in
• GST network to get operational from Aug
• GST under progress, talks on with states for drafting law
• To examine parliamentary panel report on Direct Tax Code
• Rajiv Gandhi Equity Saving Scheme launched
• Rajiv plan equity invest lock-in period to be 3 years
• Rs 50000 tax exempt for share invest in new Rajiv plan
• Tax exemption on individual share invest below a million rupees
• Tax free infra bonds Rs 600 bn to be issues FY 13
• To allow Rs 100 bn NHAI tax free bonds FY 13
• To allow Rs 100 bn IRFC tax free bonds in FY 13
• To allow Rs 50 bn HUDCO tax free bonds FY 13
• To allow Rs 50 bn SIDBI tax free bonds FY 13
• To allow Rs 100 bn power sector tax free bonds FY 13
• To okay Rs 50 bn National Housing Bank tax free bonds
• 1% loan sop plan for home loans up to Rs 2.5 mn
• Interest subvention on low cost homes extended by a year
Other Budget Highlights
• GDP to grow by 6.9% in 2011-12
• This year’s performance disappointing
• India still among front runners in economic growth
• Monetary policy was geared towards containing inflation
• Need to improve supply side of economy
• Exports grew 23 %
• Imports grew 29%
• Past year was supposed to be year of recovery
• To keep subsidies under 2% of GDP over next 3 years
• We were facing several challenges; global situation a dampener
• Industry pulled down growth in past two years
• Industry now showing signs of recovery
• Need to improve supply side of economy
• Subsidy for food security law to be fully provided
• Some subsidies inevitable
• Agriculture to services performed well
• Economy now turning around
• Manufacturing on cusp of revival
• Need to improve micro-economic environment
• Expect headline inflation to moderate in the next few months and remain stable
• Agri growth at 2.5%
• External trade growth encouraging
• India has successfully achieved diversification of import and export market
• Diversification has helped overcome global slowdown
• Current account deficit at 3.6%
• Fiscal balance has deteriorated due to increase in direct tax seepages and increased subsidy
• Expect smaller fiscal deficit in the coming year
• Concept of effective revenue deficit is being brought in as a fiscal parameter
• Crude oil prices to cross USD 115/barrel
• Need to take a close look at revenue expenditure, particularly subsidies
• Endeavour to restrict subsidy to under 2% of GDP
• Recommendation of task force under Nandan Nilekani has been accepted
• Direct transfer of fertilizer subsidy to retailer and then on to farmer to be rolled out
• Direct transfer of kerosene subsidy pilot project in Alwar, Rajasthan
• Direct subsidy transfer to be implemented in at least 50 more districts soon
• DTC to be implemented at the earliest
• The structure of GST network has been approved by EGoM
• Treasury management for CPACs has been enhanced
• Rs 30000 cr to be raised via disinvestment
• At least 51% stake will remain with the govt
• FDI in multi-band retail held in abeyance
• GST to be operational by August 2012
• Provision for advance pricing agreement included in DTC bill
• Reform in financial sector has been pursued to ensure more market intervention
• New scheme - Rajiv Gandhi equity scheme - to be introduced
• Simplifying process of IPOs
• Mandatory for companies to issue stocks over Rs 10 cr through online system
• 8 financial amendments bills to be introduced this year
• Central Know Your Customer repository would be set up
• 70,000 habitations have been provided with banking services
• Ultra small branches would be set up
• Swabhiman campaign to be extended to habitations with population of 1000 people
• 81 Regional Rural Banks have migrated to core banking
• Weak RRBs to be recapitalized for another two years
• Viability gap funding under PPP is an important factor
• Oil and gas and LNG storage and oil gas pipeline, telecom towers will also be made eligible under viability gap finding
• The first infra debt fund with a outlay of Rs 8,000 cr has been launched
• Tax free infra bonds to be raised to Rs 60,000 cr
• Coal India has been advised to sign power purchase agreements with power plants
• 8,800 km roads to be covered under NHDP
• ERCB for capex of toll system and maintenance
• ECB for working capital requirement of aviation industry for a period of 1 year with an upper cap of USD 1 bn
• Delhi-Mumbai industrial corridor has made progress
• USD 4.5 bn has come Japan for DMIC
• ECB for low cost housing
• New handloom cluster in Prakasam and Guntur districts of AP and leather cluster in Jharkhand
• Power loom mega cluster in Ichalkaranji in Maharashtra
• India opportunity venture fund to be launched
• 1% interest subvention for homes costing less than Rs 25 lakhs to continue
• RKBY under Rs 300 cr for irrigation program
• National food security mission, integrated development of pulses villages
• National mission of sustainable irrigation being taken up
• National mission on oil seed and oil palms
• Rs 500 cr for aquaculture
• Rs 10,000 cr to NABARD to refinance RRBS
• Kisan card can be operated from ATMs
• Allocation for SC/ST increased to Rs 37,113 crore
• Food security a legal entitlement
• PDS network being created using AADHAR platform
• Multispectral programs to address maternal nutrition to be rolled out in select district
• Budget OKs overseas borrowing to part-fund power projects' rupee debts
• Budget approves overseas borrowing of upto USD 1 bln for airlines' working capital needs
• Budget OKs overseas borrowing for low-cost housing projects
• To increases outlay for agriculture by 18% to Rs 202.08 bn
• India to be self sufficient in urea manufacturing in 5 years
• Foreign borrow for capex to maintain, operate toll roads
• Irrigation including damns under viability gap funding FY 13
• Irrigation, fertilizer, terminal market under viability gap funding
• To allow Rs 100 bn NHAI tax free bonds FY 13
• To allow Rs 100 bn IRFC tax free bonds in FY 13
• To allow Rs 50 bn HUDCO tax free bonds FY 13
• To allow Rs 50 bn SIDBI tax free bonds FY 13
• To allow Rs 100 bn power sector tax free bonds FY 13
• Inter ministerial panel to monitor allocated coal mines
• To OK Rs 50 bn National Housing Bank tax free bonds
• ECBs allowed to part finance rupee debt of power projects
• Hike in agri credit by Rs 1 tnh To Rs 5.75 tn next FY
• Outlay for agriculture up by 18% to Rs 202.08 bn
• Mid-Day meal scheme allocated Rs 11937 cr
• RG for empowerment of adolescent girls scheme gets 750 cr
• Rural drinking water and satiation allocated 14000 cr
• PMGSY get Rs 24000 cr
• Backward region development fund allocated Rs 12040 cr
• Development projects for drought mitigation in Bundelkhand and other select areas Rs 20000 cr
• Rs 5000 cr for developing warehousing facility
• 6000 schools to be set up at block levels and developed as model schools
• No new case of polio was reported in last one year
• New vaccine unit to be set up near Chennai
• NRHM enlarged to include iodine deficiency and vaccination
• NRHM allocated Rs 20822 cr
• National urban health mission launched
• Seven more govt medical colleges to be upgraded to AIIMS
• National Rural Livelihood Mission to provide self employment - allocation upped to Rs 3915 cr
• Interest subvention of additional 3% on loans upto Rs 3 lakhs to women self help groups - effective rate of 4%
• Credit guarantee fund for skill development
• In the eventuality of the death of the bread earner of a BPL family they will get Rs 10,000
• Rs 25 cr to Institute of Rural Management in Anand
• Rs 100 cr for Kerala agricultural University
• Rs 50 cr of Dharwad Agriculture University
• Rs 50 cr to Agri universities in Haryana, Odisha
• Indira Gandhi pension scheme beneficiaries to get Rs 300 pm as against current Rs 200
• National population registry project to be completed in the next two years
• 14 cr AADHAR number generated
• AADHAR is ready for payments under MGNERGA, pension scheme
• 82 double tax avoidance agreements have been finalized
• 17 tax info sharing agreements has been finalized
• Will table white paper on black money
• Dedicated information cells to track black money
• Allowed direct import of ATF by airlines
• Realtors can borrow from overseas for low cost home projects
• Gave Rs 40 bn in FY 13 for rural housing Vs Rs 30 bn in FY 12
• Announces 2 new handloom mega clusters
• To set up 3 technical assistance centres for textiles
• Allot Rs 700 mn for Maharashtra power loom cluster
• East Indian states produced 7 mn tones more of paddy
• Rs 5 bn pilot plan in 12 plan for geo textiles in NE
• Allot 10 bn to up kharif output in NE FY 13
• Allot 4 bn to up kharif output in NE FY 12
• Rs 5.75 tn farm credit in FY 13
• Rs 100 bn to NABRAD for refinancing RRBs
• NABARD to give rural banks Rs 100 bn for short term loans
• Allocated Rs 255.55 bn under Right to Education
• Allocated Rs 208.22 bn under rural health plan FY 13
• No new case of polio
• Credit guarantee fund proposed for poor students
• Allocated Rs 31.24 bn for secondary education
• Allocated Rs 200 bn for rural infra development in FY 13
• Allocated Rs 240 bn under rural road project
• Allocated Rs 158.50 bn for child development in FY 13
• Expect gross tax receipts at Rs 10.78 tn next FY
• Total spending Rs 14.49 tn next FY
• Expect non-tax revenue at Rs 1.64 tn next FY
• Non-Plan spending Rs 9.69 tn next FY
• Fiscal deficit 5.9% of GDP this FY
• Expect Fiscal deficit 5.1% of GDP next FY
Five focus areas this year:
• Revival of domestic consumption
• Achieve condition for revival of high growth
• Remove supply bottlenecks
• Intervene decisively to address malnutrition
• Expedite improvement in delivery systems and address black money
Farm & Food
• Agri to be on govt priority list
• To increases outlay for agriculture by 18% to RS 202.08 bn
• India to be self sufficient in urea manufacturing in 5 years
• Announces 2 new handloom mega clusters
• To set up 3 technical assistance centres for textiles
• Allot Rs 700 mn for Maharashtra power loom cluster
• East Indian states produced 7 mn tones more of paddy
• Rs 5 bn pilot plan in 12th plan for geo textiles in NE
• Allocated Rs 3 bn for FY 13 irrigation plans
• Allot Rs 10 bn to up kharif output in NE FY 13
• Allot Rs 4 bn to up kharif output in NE FY 12
• Allot 5 bn for aquaculture FY 13
• NABARD to give rural banks Rs 100 bn for short term loans
• To move bill for NABARD Act amendment
• 3% rate subvention for farmers repaying loans on time
• Rs 5.75 tn farm credit target in FY 13
• Rs 2 bn for R&D of seeds and farm research
• Allocation to farm development plan RKVY hiked to Rs 92.17 bn
• To set up govt owned irrigation promotion company
• To add 5 mn tones grain storage capacity in FY 13
• To start national food processing mission in FY 13
• Micro-irrigation allotment up 13% to Rs 142.42 bn
Financial Sector & Banks
• India Opportunity Venture Fund via SIDBI of Rs 50 bn
• To issue revised norms for banks priority sector lending
• To set up financial holding company for recapitalization of banks
• To move National Housing Bank Amendment Bill
• To move Regional Rural Bank Amendment Bill
• Rs 158.88 bn for capitalization of PSU banks in FY 13
• Propose electronic voting to up shareholder involvement
• IPOs of over Rs 100 mn to be in electronic form
