BUDGET HIGHLIGHTS

The following changes have been proposed in finance bill -2011

(A) INCOME TAX RATES

Income Tax Rates for Individual/HUF

Existing Limit	Tax	Revised Limit	Tax
Up to Rs 1,60,000/- Rs 1.90 lacs for Women Rs 2.40 lacs for Senior Citizen	NIL	Up to Rs 1,80,000/- Rs 1.90 lacs for Women Rs 2.50 lacs for Senior Citizen Aged up to 80 years Rs 5.00 lacs above age of 80 years	NIL
Basic Exemption limit to Rs 5.00 lacs	10%	Basic Exemption limit to Rs 5.00 Lacs	10%
Above Rs 5.00 lacs to Rs 8.00 lacs	20%	Above Rs 5.00lacs to Rs 8.00 lacs	20%
Above Rs 8.00 lacs	30%	Above Rs 8.00 lacs	30%
Education Cess / Higher Edu.Cess	2%+1%	Education Cess / Higher Edu.Cess	2%+1%

Revised limit for Companies – (Tax 30%)

	Existing	Revised
Surcharge	7.5%	5%
MAT	18%	18.5%

(B) MAJOR AMENDMENTS

.

Revised limit of Deduction

U/s. 80 CCF : Investment in Long Term infrastructure Bonds - additional Rs. 20,000 available to Individual/HUF as deduction over an above regular deduction U/s.80C of Rs. 1 lac. is now available for additional one year during 2011-12 i.e up to 31.03.2012.

(C) INTRODUCTORY PROVISIONS

(i) U/s 36 (iva) Payment by Employer towards Pension Scheme as referred to in Section 80CCD, on account of Employee is allowable as deduction subject to limit of 10% of salary.

(ii) Special Economy Zone (SEZ) now come under the perview of Minimum Alternate Tax (MAT) @ 15 %

(iii) The Senior Citizen benefit to start at 60 years instead of 65 years

(iv) A new clause of Super Senior Citizen aged above 80 gets an even higher IT exemption limit of Rs 5 lacs.