Proposal to hike income tax exemption limit for individuals along with significant benefits for senior citizens
New Delhi: Finance minister Pranab Mukherjee today proposed hiking the income tax exemption limit for individuals along with significant benefits for senior citizens, the retention of 10% service tax and withdrawal of some previous duty exemptions. Following a some tax-related highlights from the finance minister's Union Budget presented in Parliament today.
Unveiling the Budget proposals for 2011-12, finance minister Pranab Mukherjee today proposed to raise the income tax (I-T) exemption limit for general tax payers to Rs1.80 lakh. He also introduced a high new tax slab for very senior citizens of 80 years and above
New Delhi: Finance minister Pranab Mukherjee today proposed to raise the income tax (I-T) exemption limit for general tax payers to Rs1.80 lakh per annum from Rs1.60 lakh at present and introduced a high new tax slab for very senior citizens of 80 years and above, reports PTI.
Unveiling the Budget proposals for 2011-12 in the Lok Sabha, he also proposed to reduce the age limit for consideration as senior citizens from 65 years to 60.
Senior citizens will get tax exemption for income up to Rs2.50 lakh, higher from Rs2.40 lakh now.
As per the announcement, the increase in the income tax exemption limit for general tax payers (excluding women and senior citizens) to Rs1.80 lakh per annum would translate into a benefit of Rs2,000 for all tax payers.
At present, the general tax payers earning more than Rs1.60 lakh per annum are required to pay income tax.
Introducing a new tax slab for very senior citizens (80 years and above), Mr Mukherjee said, they will not have to pay any tax for annual income up to Rs5 lakh.
The government, which has set up a task force under Nandan Nilekani, presently the chairman of the Unique Identification Authority of India (UIDAI) to work out the modalities, is expected to present its interim report by June this year
New Delhi: Concerned over the misuse of subsidies provided under various schemes, finance minister Pranab Mukherjee today said the government will provide a direct cash subsidy on kerosene and fertilisers to the poor from March next year, reports PTI.
"... To ensure greater cost efficiency and better delivery for both kerosene and fertilisers, the government will move toward direct transfer of cash subsidy for people below poverty line (BPL) in a phased manner," Mr Mukherjee said during his presentation of the Budget 2011-12.
The system will be in place by March, 2012, he said.
A task force headed by Nandan Nilekani is working out the modalities for the proposed system of direct transfer of subsidy for kerosene, LPG and fertilisers, he said.
"The interim report of this task force is expected by June this year," he said.
At present, the government provides kerosene at subsidised rates to families living below the poverty line through the public distribution system (PDS). Furthermore, LPG is provided at a subsidised rate to households.
As regards fertilisers, the government provides subsidy to companies so that farm inputs, which include urea and imported fertilisers, can be provided to farmers at cheaper rates.
Earlier this month, the government set up a task force under the former chief of Infosys, Mr Nilekani, who at present is Unique Identification Authority of India (UIDAI) chairman. The panel also included secretaries from the ministries of finance, chemicals and fertilisers, agriculture, food, petroleum and rural development.
The need to set up the task force arose in view of "overwhelming evidence that this (current) policy is resulting in waste, leakage, adulteration and inefficiency. Therefore, it is imperative that the system of delivering the subsidised kerosene be reformed urgently," the government had said.
Besides designing an IT framework, the task force will align the systems with the issuance of the UID numbers and suggest changes in the administration and supply chain management.
The recommendations of the task force will be implemented on a pilot basis by the concerned ministries and the final report would include the results of such projects.