Indian Union Budget Highlights - 2011

Pranab Mukherjee failed to meet the expectations of the most middle class who is suffering from the uncontrolled inflation. He did not offer too much relief to individual taxpayers except raising income tax (I-T) exemption limit to Rs1.80 lakh from Rs1.60 lakh. There is no change in the tax exemption limit for women.

The age limit for senior citizens is lowered to 60 years from 65 years and also increased the I-T exemption limit to Rs2.50 lakh from Rs2.40 lakh. For every senior citizen aged 80 years and above, the income-tax exemption limit has been raised to Rs5 lakh.

Adding 1% excise duty on 130 commodities would further fuel the inflation. The worst in the speech was his comment on corruption, "Corruption we all have to face collectively".

- Direct taxes code will be effective from 01-04-2012

- States will be encouraged to agree on gst
- Individual tax limit raised to 1.80 lakhs
- No change in tax rates
- MAT raised to 18.5% from 18%
- Senior citizen age reduced to 60 years- exemption 2.50 lakhs
- New category of very senior citizen- 80 years or more- exemption Rs. 5 lakhs
- Surcharge on domestic companies reduced to 5% from 7.5%
- Exemptions under 80c- additional 20000.00 in infra bond will continue for one more year.
- Central excise rate maintained at 10%
- No change in service tax rate
- Service tax law will be rationalised
- New services introduced- hotel accomodation having 1000.00 or more room per day, restauraent service liquor, life insurance companies services in investment, legal serivces in arbitration etc.
- Rs.52057 crores are allocated for education sector
- New series of coins having new re. Symbol will be released
-  Rs. 500 crores will be infused in rural banking
- Service tax refund process will be simplified
- Two more CPC in Pune and Manesar
- New companies bill to be introduced in the current session
- Allocation for farm development hiked to 7860 cr.
- The momentum of disinvestment will be maintained
- Interest subvention for home loan hiked to 25 lacs
- FII investment limit in infra corp bond raised to $25 bn
- Govt. Will provide direct subsidy to people living below poverty line
- 15 more mega food parks will be setup
- Loan to minorities:- Target 15% of total loan to priority sector
- Health allocation up by 20%