Positive from Budget 2011 – 2012
· Senior Citizen Age Limit reduced from 65 years to 60 years for Income Tax purposes
· The green orientation of the budget is a welcome positive
· Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent
· Direct investment in Indian Mutual Funds by any foreigner is a big move
· MFs allowed to raise money from foreign investors is pathbreaking
· Budget is positive for equity markets
· Lower fiscal deficit target is commendable
· No import duty on ship parts positive for SCI
· Tax exemption limit for senior citizens raised to Rs 2.5 lakh from 2.4 lakh
· Basic food and fuel and precious stones, gold and silver jewellery to be exempted from central excise duty
· Nominal 1 per cent central excise duty on 130 items entering the tax net
· LED to cost less
· Government has cut many import duties to check inflation
· No further rollback of 2008 stimulus
· Direct cash subsidy for poor on fuel, fertilizers by March, 2012
· Category for ‘very senior citizen’ positive for rich
· Steel prices to come down
· ICICI Direct: Unchanged excise is positive for auto, OEMs
· FY 11 revenue deficit at 2.1%, sentiment positive says Nirmal Jain
· Tax exemption limit for individuals increased from Rs 1.6 lakh to Rs 1.8 lakh
· Exemption limit for women remains the same at Rs 2,40,000.
· For senior citizens above 80, the tax exemption limit has been raised to Rs 500,000 (Super senior citizens)
· For senior citizens, tax exemption limit increased to Rs 2,50,000 (Age 60+)
· Priority home loan limit upped from Rs. 20 lakh to Rs. 25lakh
Negatives of the Budget 2011 – 12
· Health Check-Ups in Private hospitals to become expensive
· EXPENSIVE: International Air Travel
· EXPENSIVE: Domestic Air Travel
· Tax on life insurance service providers could be negative for insurance companies
· Travel, Healthcare to become expensive due to increased service tax
· Lack of FDI in retail was a disappointment
· New service tax to hurt companies in hospitality
· Hike in export duty on Iron Ore is a negative
· Air travel to cost more
· Branded clothes may cost more
· Rise in MAT to hurt RIL, GVK Power, telcos
· FY 11 fiscal deficit above estimates, negative
· Divestment but no privatization is timid
· Doubled anganwaadi wages with a check on absenteeism not good
Source: Fwd Email
