The
Hon’ble Finance Minister Mr. Pranab Mukhrjee presented budget on 28.02.2011.
The budget is neither reforming nor favorable to common man. One hand he has
given some benefits and on the other hand increased the burden on common man by
widening the service tax base and increasing excise duties. He has preferred to
play safe looking at present economic scenario and political issues. He has
neither tried to hit a four nor has bowled out by populist budget.
The
main highlights of the budget relating to personal finance are:
►
The Income Tax limit in general category
for males is raised from 1,60,000 to 1,80,000, giving nominal benefit of Rs.
2,000 for full year.
►
The female taxpayers in general category
will not benefit at all. The exemption limit is Rs. 1,90,000 at present, which
is unchanged.
►
The senior citizens age criteria is reduced
from 65 to 60 years. This will be like a bonus for those who will be completing
60 years in the next year. The basic limit is raised from 2,40,000 to 2,50,000,
giving again nominal benefit of Rs. 1,000 for full year.
►
He has also created a new category of very
senior citizens for age 80 years and above.
The basic limit is set at Rs. 5,00,000. I think Finance Minister has created
this category for himself and his fellow MPs. This will only benefit
Politicians, Bureaucrats and HNIs, and will not give any relief to common man.
►
He has extended one more year for
additional deduction for infra bond u/s 80-CCF, which gives additional benefit
of Rs. 20,000 to tax payers.
►
The tax rates are unchanged. Service tax
rates are also unchanged but he has smartly added new services in the list.
Hotels with tariff above Rs. 1,000, Restaurants with Bar & AC, and
Hospitals with 25 & more beds with AC and air travel are added in service
tax list. FM must reconsider levying tax on hospitals from this as it is
related to health care and people are not sufficiently insured for this. This
burden, as we all know, will be passed to patients only.
►
The Finance Minister has again put faith on
FII’s by allowing them to buy mutual fund units instead of giving more benefits
to Indians. The Finance Minister should have encouraged Indian Public to invest
in mutual funds by giving more tax relief.
►
There is nothing on GST & DTC.
Budgetary deficit, Inflation and higher interest rate still a concern for
double digit growth.
►
Once again he has talked about non-filing
of returns by salaried and also introduction of saral IT form, which was
abolished two years back. Every three years they repeat the same and are not
sure about giving relief to small taxpayers.
►
Scams & scandals, elections in two
states & higher crude oil price have taken away the opportunity available
to the Government. Hike in oil prices after elections in two states is also not
ruled out.
