Duty reduced on LED TV

 Today's budget has reduced duty on LED  TV. Waiting for notification for exact  duty.

Income tax exemption for citizen in this Budget

 Direct Tax Code (DTC) will be effective from 1.4.2012.
Exemption limit  raised to Rs 1,80,000/= for general Tax payer.
Senior citizen age  reduced  form 65 Years to 60 Years and exemption limit is Rs 2,50 ,000/=
One more category of senior Citizen ,who are above 80 years, exemption limit is Rs 5,00,000/-.

No need to file IT return by Salaried people

 If  employer  has deducted TDS  from Salary ,then, Salaried employee need not to file  IT return.

Relief from litigation for small revenue locked

As per Govt litigation policy , Govt Department will not  appeal in higher  judicial forum ,if revenue involved is less than  prescribed by Govt. It will concentrate more on higher revenue realisation ,where  revenue involved is high.

Self Assessment of import duty is introduced for importer and exporter

Self assessment by importer  and exporter   is a  great step. It will reduce time of transaction and cost  of compliance with Customs formalities. Thus will lead more competitive  price of  Indian Goods  and improve
efficiency of Global Supply Chain. There will be random checks by Customs to prevent mis use of  self assessment practice. This scheme is operative in various form for past many years. But  ,now it is has been widen.   Detail procedure will be known only after  Notification or circular is issued by CBEC.

As per Task force of Ministry of Commerce, It is said that  reducing of transaction cost will yield saving of
  Rs 2100  Crore.

CBEC has EDI systems at  91 locations. Electronic filing and    CBEC web portal are great tool for reducing transaction cost.  Even  State Govts  have started accepting  Electronic Tax Returns.

Goods and Service tax ( GST) in this budget 2011-2012

Honourable FM has proposed that  he will introduce Constitutional   amendment for GST. Establishment of  national IT   network  will be back bone of effective GST regime. In June 2011 ,Pilot portal on GST, with collaboration  with 11 States ,will be launched. Lower rate of Central Excise duty is increased form  4 % to 5 %. Around 130 items of consumer nature , Central  Excise duty is reduced to 1%  ,in order to align with GST.

Lower limit of central excise duty is increased form 4 % to 5 % to align GST.

 Many States have increased  rate of VAT from  4 % to 5 %.  Therefore , FM has also increased  lower rate of Central Excise Duty from 4 % to 5 %.  Peak Basic rate of central Excise is 10 % only.
Net gain by Indirect tax  in this budget  is Rs 7,300 crore.

Less Excise duty on consumer goods to align with proposed GST

 Duty on Sanitary napkin  is reduced from 10 % to 1%.
 Around 130 items , mostly consumer goods, duty is reduced to 1 %. No cenvat credit is allowed on these items.

Reduce customs duty on work of art , exhibitions and Film Rolls

Exemption form duty on  Work of    Art for exhibitions ,
colour unexposed jubo reel, 10,000 and 4000 feets are exempted  form excise duty.

Reduce customs and excise duty for promoting green economy

Less Excise  duty on car based on  hybrid Fuel & hydrogen  cell.
LED lights  ,customs duty is 5 %.
 Customs Duty on Solar lantern is reduced form 10 % to 5 % .
Excise duty exemption for Mega Power  Project.

No change is peak rate of Customs duty , it is still 10 % for most of items.

Honourable FM missed two paras , read them before Indirect tax portion of the Budget.  Three rate of basic customs duty  are kept for most of items.
Thrust was on simplification and rationalization of Taxes.
Curb on Money laundry and  Corrupt practice.
 Reduction in duty for promoting green economy.
2.5 % customs duty on  specified agriculture machinery.
Reduce  Customs duty on silk from 30 % to 5 %.
Customs duty on Technical fabric from 7.5% to 5%.
Reduction of duty  on parts for mobile hand set.
Reduce  Customs duty on  coke and Gypsum   to 2.5 %.

Budget high light on Gifts

There is no change in Gift limit for importing goods for personal use.