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VIMAL TANDON & CO.VIMAL TANDON & CO.CHARTERED CHARTERED
ACCOUNTANTSACCOUNTANTSBUDGET 2011-2012BUDGET 2011-2012
HIGHLIGHTSHIGHLIGHTS
INDIRECT INDIRECT TAXETAXESS SERVICE TAXSERVICE TAX
Service tax remained unchanged at 10 percent.Service tax remained unchanged at 10 percent. New Services Taxed:New Services Taxed:
Services by air conditioned restaurants having licence to serve liquor.Services by air conditioned restaurants having licence to serve liquor.
Short term accommodation hotels / inns / clubs / guest houses etc Short term accommodation hotels / inns / clubs / guest houses etc charging in excess of charging in excess of `̀ 1000/- per day. 1000/- per day.
Amendment in existing services:Amendment in existing services:
Tax on all services provided by hospitals with 25 or more beds with facility of central air conditioning.
Service Tax on air travel raised.
Operational Amendments:Operational Amendments:
The maximum penalty for delay in filing of return increased from The maximum penalty for delay in filing of return increased from ` ` 2,000 2,000 to to ` ` 20,000 .20,000 .
The monetary limit for adjustment of excess service tax paid is increased The monetary limit for adjustment of excess service tax paid is increased from from ` ` 1.00 lacs to 1.00 lacs to ` ` 2.00 lacs. 2.00 lacs.
The penalty for delayed payment of service tax u/s 76 has been reduced The penalty for delayed payment of service tax u/s 76 has been reduced from 2% to 1% per month or from 2% to 1% per month or ` ` 100 per day whichever is higher. 100 per day whichever is higher.
The maximum penalty reduced to 50% of the tax. The maximum penalty reduced to 50% of the tax.
The rate of interest is reduced by 3% for assesses with turnover of upto The rate of interest is reduced by 3% for assesses with turnover of upto ` ` 60 lacs under section 73B and 75. 60 lacs under section 73B and 75.
All individual and sole proprietor tax payers with a turn over upto ` 60 lakh freed from the formalities of audit under Service Tax.
DIRECT TAXESDIRECT TAXESIndividualIndividual
Basic exemption limit for women resident in India remained unchanged at Basic exemption limit for women resident in India remained unchanged at ` ` 1,90,000.1,90,000.
The qualifying age limit for senior citizens has been lowered from 65 The qualifying age limit for senior citizens has been lowered from 65 years to 60 years and the current exemption limit has been bifurcated years to 60 years and the current exemption limit has been bifurcated under two categories:under two categories:
Category -1 - Age of Individual – 60 years or more but less than 80 Category -1 - Age of Individual – 60 years or more but less than 80
years at any time during the previous year. The basic exemption limit years at any time during the previous year. The basic exemption limit is increased from is increased from ` ` 2.40 lacs to 2.40 lacs to ` ` 2.50 lacs 2.50 lacs
Category – 2 - Age of Individual beyond 80 years or more at any time Category – 2 - Age of Individual beyond 80 years or more at any time
during the previous year. The basic exemption limit is during the previous year. The basic exemption limit is ` ` 5.00 lacs. 5.00 lacs.
Basic exemption limit for men and HUF resident in India increased from Basic exemption limit for men and HUF resident in India increased from ` ` 1,60,000 to 1,60,000 to ` ` 1,80,000.1,80,000.
Income tax slabs for individual/HUF Income tax slabs for individual/HUF taxpayers: taxpayers:
Income slabIncome slab(AY 2011-12) (AY 2011-12)
Income slabIncome slab(AY 2012-13) (AY 2012-13)
Rates of Rates of Income Tax Income Tax
Upto Upto ` ` 1,60,000 1,60,000 Upto Upto `̀ 1,80,000 1,80,000 Nil Nil
` ` 1,60,001 to 1,60,001 to `̀ 5,00,000 5,00,000 ` ` 1,80,001 to 1,80,001 to `̀ 5,00,000 5,00,000 10% 10%
`̀ 5,00,001 to 5,00,001 to ` 8` 8,00,000 ,00,000 `̀ 5,00,001 to 5,00,001 to ` 8` 8,00,000 ,00,000 20% 20%
Above Above ` 8` 8,00,000 ,00,000 Above Above ` 8` 8,00,000 ,00,000 30% 30%
Income tax slabs for senior citizens:Income tax slabs for senior citizens:
Age GroupAge Group60-80yrs 60-80yrs
Age GroupAge Group80yrs and above80yrs and above
Rates of Rates of Income Tax Income Tax
Upto Upto ` ` 2,50,000 2,50,000 Upto Upto `̀ 5,00,000 5,00,000 Nil Nil
` 2` 2,50,001 to ,50,001 to `̀ 5,00,000 5,00,000 10% 10%
`̀ 5,00,001 to 5,00,001 to ` 8` 8,00,000 ,00,000 `̀ 5,00,001 to 5,00,001 to ` 8` 8,00,000 ,00,000 20% 20%
Above Above ` 8` 8,00,000 ,00,000 Above Above ` 8` 8,00,000 ,00,000 30% 30%
Firms / CorporatesFirms / Corporates
No change in corporate tax rate, education cess and additional No change in corporate tax rate, education cess and additional secondary and higher education cess.secondary and higher education cess.
Companies having taxable income of more than Companies having taxable income of more than ` ` 1Crore continue 1Crore continue to pay surcharge but at a reduced rate of 5% instead of 7.5%. to pay surcharge but at a reduced rate of 5% instead of 7.5%.
Foreign company continue to pay surcharge but at a reduced rate Foreign company continue to pay surcharge but at a reduced rate of 2% instead of 2.5%. of 2% instead of 2.5%.
Domestic CompaniesDomestic Companies MAT (Minimum Alternate Tax) has been increased to 18.5% as against MAT (Minimum Alternate Tax) has been increased to 18.5% as against
18% last year. 18% last year.
Corporate tax rate remains at 30% Corporate tax rate remains at 30%
Education Cess : 2% Education Cess : 2%
Secondary and Higher Education Cess: 1% Secondary and Higher Education Cess: 1%
Surcharge : Reduced from 7.5% to 5% if taxable income exceeds Surcharge : Reduced from 7.5% to 5% if taxable income exceeds ` ` 1 1 Crore ( 10 million) Crore ( 10 million)
The Indian company which receives foreign dividend from foreign The Indian company which receives foreign dividend from foreign subsidiary company such dividend is taxable at the 15% as against 30% subsidiary company such dividend is taxable at the 15% as against 30% plus applicable surcharge. plus applicable surcharge.
Foreign CompaniesForeign Companies The income tax rates remain unchanged at 40% The income tax rates remain unchanged at 40%
Surcharge: Reduced from 2.5% to 2%.Surcharge: Reduced from 2.5% to 2%.
Education Cess : 2% Secondary and Higher Education Cess: 1%Education Cess : 2% Secondary and Higher Education Cess: 1%
FirmsFirms
The income tax rate for firms remains unchanged at 30% The income tax rate for firms remains unchanged at 30%
Limited Liability PartnershipLimited Liability Partnership Alternative Minimum Tax has been introduced for Limited Liability Alternative Minimum Tax has been introduced for Limited Liability
Partnership (LLP) in line with MAT on companies with effect from Partnership (LLP) in line with MAT on companies with effect from the Assessment Year 2012-13. the Assessment Year 2012-13.
TrustsTrusts The definition of charitable purpose u/s 2 (15) includes “the The definition of charitable purpose u/s 2 (15) includes “the
advancement of any other object of general public utility”. advancement of any other object of general public utility”. The monetary limit in respect of such activities has been enhanced fromThe monetary limit in respect of such activities has been enhanced from ` ` 10.00 lacs 10.00 lacs ` ` 25.00 lacs. 25.00 lacs.
Deductions and ExemptionsDeductions and Exemptions : : Investment in long-term infrastructure bonds notified by the Investment in long-term infrastructure bonds notified by the
Central Government upto Central Government upto `̀ 20,000 is allowed as deduction over 20,000 is allowed as deduction over and above the existing limit of and above the existing limit of ` ` 1 lakh on tax savings extended 1 lakh on tax savings extended for Assessment Year 2012-13. for Assessment Year 2012-13.
The deduction u/s 80CCF to investment in notified long term The deduction u/s 80CCF to investment in notified long term infrastructure bonds extended for the A.Y. 2012-13 also. infrastructure bonds extended for the A.Y. 2012-13 also.
Weighted deduction increased from 175 % to 200 % on payments Weighted deduction increased from 175 % to 200 % on payments made to National Laboratories, research associations, colleges, made to National Laboratories, research associations, colleges, universities and other institutions, for scientific research universities and other institutions, for scientific research
Sunset clause for tax holiday to power sector u/s 80IA(4) has been Sunset clause for tax holiday to power sector u/s 80IA(4) has been extended. extended.
Tax Deduction at SourceTax Deduction at Source No change in Tax Deduction at SourceNo change in Tax Deduction at Source
GeneralGeneral
The Government exempts assessees having no other income other than The Government exempts assessees having no other income other than salary from furnishing the return of income by notification. The proposed salary from furnishing the return of income by notification. The proposed amendment shall be effective from 1st June, 2011. amendment shall be effective from 1st June, 2011.
It is proposed to omit the requirement of quoting of Documentary It is proposed to omit the requirement of quoting of Documentary
Identification Number in notices / order / correspondences issued by Identification Number in notices / order / correspondences issued by Income tax department. Income tax department.
The SEZ developers are required to pay dividend distribution tax on The SEZ developers are required to pay dividend distribution tax on
dividends declared / distributed on or after 1st June, 2011. dividends declared / distributed on or after 1st June, 2011. Liaison offices of a company will be required to file Annual Information in Liaison offices of a company will be required to file Annual Information in
the prescribed form with in the 60 days from the end of the financial year. the prescribed form with in the 60 days from the end of the financial year. The tax holiday for power sector has been extended for further period of The tax holiday for power sector has been extended for further period of
one year i.e. upto 31.03.2012. one year i.e. upto 31.03.2012.
Settlement Commissions granted power of rectification of its order.
BUDGET HIGHLIGHTS PRESENTATION BY :-BUDGET HIGHLIGHTS PRESENTATION BY :-
M/s Vimal Tandon & Co.M/s Vimal Tandon & Co.Chartered AccountantsChartered AccountantsA-107/1, Pal Mohan Plaza, 11/56,A-107/1, Pal Mohan Plaza, 11/56,D.B. Gupta Road, Karol Bagh,D.B. Gupta Road, Karol Bagh,New Delhi - 110005 New Delhi - 110005 Telefax – 23551056Telefax – 23551056Tel. 45032501Tel. 45032501Mob. 9810221653, 9868171653Mob. 9810221653, 9868171653website - vimaltandon.comwebsite - vimaltandon.com
charteredaccountantindelhi.com charteredaccountantindelhi.come-mail. - [email protected]. - [email protected]
