"BUDGET 2011-12 : AT A GLANCE"

Hits and misses of Budget 2011

As the Budget 2011 has been announced, we take at look at some hits and misses of the same: Hits: > No further rollback of 2008 stimulus - a big surprise > Excise duty to be reduced from 10% to 5% on parts of specified machinery > Surcharge on corporate lowered to 5% > Income tax exemption limit for general category in individual tax payers enhanced from Rs 1,60,000 to Rs.1,80,000 > Qualifying age for senior citizens lowered to 60; senior citizen above 80 year to get Rs.5,00,000 income tax exemption > Special incentives for hybrid vehicle makers if manufacturing done in India to be positive for auto companies > FII limit for investment in corporate bonds in infrastructure sector raised positive move > Additional banking license to private sector players proposed > Crude palm used in sports exempted from customs duty to be positive for palm oil companies > Duty reduced on hybrid & electric cars along with batteries imported for such vehicles > Senior citizen age limit reduced from 65 years to 60 years for income tax purposes > Basic customs duty on agricultural machinery reduced to 4.5% from 5% > Direct investment in Indian mutual funds by any foreigner is a big move > Mutual Funds allowed to raise money from foreign investors is path-breaking > 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% central excise duty on 130 items entering the tax net > LED to cost less > Government has cut many import duties to check inflation > Five-fold strategy to deal with black money Misses: > Service tax on air travel raised, negative for airlines > Tax on life insurance service providers could be negative for insurance companies > Travel, healthcare to become expensive due to increased service tax; new service tax to hurt companies in hospitality > Lack of FDI in retail was a disappointment > Hike in export duty on iron ore is a negative > Branded clothes may cost more > Rise in MAT to hurt corporate sector > FY 11 fiscal deficit above estimates, negative SOURCE: IRIS