Union Finance Minister Pranab Mukherjee presented the Budget for 2011-12 in Parliament today. Higher tax exemption limit for individuals, significant benefits for senior citizens, retention of service tax at 10 per cent and withdrawal of some duty exemptions were some of the major tax-related highlights of the Budget 2011-12.
Here is a look at which items are cheaper and which have become costly after the Budget:
Tax exemption limit raised to Rs. 1.8 lakh, from Rs. 1.60 lakh for individual tax payers.
For senior citizens, the qualifying age reduced to 60 years and exemption limit raised to Rs. 2.50 lakh from Rs. 2.40 lakh.
Citizens over 80 years to have exemption limit of Rs. 5 lakh.
Housing loan limit for priority sector lending raised to Rs.25 lakh.
1 per cent interest subvention on home laons upto Rs 15 lakh.
Basic food and fuel and precious stones, gold and silver jewellery will be exempted.
Basic customs duty on agricultural machinery reduced to 2.5 per cent from 5 per cent
Service tax widened to cover hotel accommodation above Rs. 1,000 per day, A/C restaurants serving liquor, some category of hospitals, diagnostic tests.
Service tax on air travel increased by Rs. 50 for domestic travel and Rs. 250 for international travel in economy class.
370 items that enjoy exemptions from central excise. 130 of these items that are mainly in the nature of consumer goods, the remaining 240 items to be brought into the tax net when GST is introduced.
3 per cent subsidy to farmers in FY 2012.
Basic customs duty on raw silk reduced from 30 to 5 per cent.
No new tax exemption limit for women.
How much you are satisfied with the budget?