Budget 2011- Tax Provisions At a Glance

Here are the changes/provisions in brief relating to taxes on individuals and businesses proposed in the Union Budget 2011 by Finance Minister Pranab Mukherjee, who presented his sixth General Budget.

Individuals:
Tax exemption limit raised from Rs 1,60,000 to Rs 1,80,000
No new tax exemption limits for women (retained at Rs 1,90,000)
Age for being classified as senior citizen cut to 60 years from 65 years
For senior citizens, tax exemption limit increased to Rs 2,50,000.
New category of very senior citizens for those above 80 years introduced, tax exemption limit Rs 5 lakh
Tax sops of Rs 20,000 on Infra Bonds extended for one year

Small Businesses:
To simplify tax form for small businesses

Companies:
Surcharge of 7.5 % for domestic companies reduced to 5 %
MAT raised to 18.5% of book profits from 18%
Special Economic Zones to come under MAT
Foreign unit dividend tax rate cut to 15 % for Indian companies

Indirect Taxes:
Service tax retained at 10%
Central excise duty rate unchanged at 10%
Base rate on excise duty raised to 5% from 4%