Union Budget 2011: No filing of tax returns if salary is only income

   NEW DELHI: In a big relief from cumbersome tax filing process for the salaried class, finance minister Pranab Mukherjee on Monday proposed to exempt them from filing tax returns unless they have other sources of income.

   The government will be issuing a notification exempting 'classes of persons' from the requirement of furnishing income tax returns, said the Memorandum to the Finance Bill 2011.

   The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, it added.

   Salaried taxpayers who do not have other sources of income and whose incomes are subject to Tax Deduction at Source ( TDS )) will be excluded from filing returns.

   "Therefore, in cases where there is no other source of income, filing of a return is duplication of existing information," the Memorandum said.

   Every person whose income exceeds the taxable limit is required to file return of income.

Courtesy;economictimes

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Union Budget 2011-12 Highlights

· Critical institutional reforms set pace for double-digit growth

· Scaled up flow of resources infuses dynamism in rural economy

· GDP estimated to have grown at 8.6% in 2010-11

· Exports grown by 9.6%, imports by 17.6% in April-January 2010-11 over corresponding period last year

· Indian economy expected to grow at 9% in 2011-12.

· Five-fold strategy to deal with black money. Group of Ministers to suggest ways for tackling corruption

· Public Debt Management Agency of India Bill to come up next financial year

· Direct Tax Code (DTC) to be effective from April 01, 2012

· Phased move towards direct transfer cash subsidy to BPL people for better delivery of kerosene, LPG and fertilizer mooted

· Rs.40,000 crore to be raised through disinvestment in 2011-12

· FDI policy to be liberalized further

· SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirement

· FII limit for investment in corporate bonds in infrastructure sector raised

· Additional banking license to private sector players proposed

· Rs.6000 crore to be provided in 2011-12 for maintaining minimum Tier I Capital to Risk Weighted Asset Ratio (CRAR) of 8% in public sector banks

· Rs.500 crore to be provided to regional rural banks to maintain 9% CRAR

· India Microfinance Equity Fund of Rs.100 crore to be created by SIDBI

· Rs. 500 crore Women SHG Development Fund to be created

· Micro Small and Medium Enterprises MSME gets boost as Rs. 5000 crore provided to SIDBI and Rs.3000 crore to NABARD

· Existing housing loan limit enhanced to Rs.25 lakh for dwelling units

· Provision under Rural housing Fund enhanced to Rs.3000 crore

· Allocation under Rashtirya Krishi Vikas yojna (RKVY) increased to Rs.7860 crore

· Allocation of Rs.300 crore to promote 60000 pulses villages in rainfed areas

· Rs. 300 crore vegetable initiative to achieve competitive prices

· Rs.300 crore to promote higher production of nutri-cereals

· Rs.300 crore to promote animal based protein

· Rs.300 crore Accelerated Fodder Development Programme to benefit farmers in 25000 villages

· Credit flow to farmers raised from Rs.3,75,000 crore to Rs.4,75,000 crore

· Rs.10,000 crore for NABARD’s Short Term Rural Credit Fund for 2011-12

· 15 more mega food parks during 2011-12

· National food security bill to be introduced this year

· Capital investment in storage capacity to be eligible for viability gap funding

· 23.3% increase in allocation for infrastructure

· Tax-free bonds of Rs.30,000 crore proposed by government undertakings

· Environmental concerns relating to infrastructure projects to be considered by Group of Ministers

· National Mission for Hybrid and Electric Vehicles to be launched

· 7 Mega clusters for leather products to be set up

· Allocation for social sector increased by 17% amounting to 36.4% of total plan allocation

· Bharat Nirman allocation increased by Rs.10,000 crore

· Rural broadband connectivity to all 2.5 lakh panchayats in three years.

· Bill to amend Indian Stamp Act to introduce. Rs.300 crore scheme for modernization stamp and registration administration

· Significant increase in remuneration of Angawadi workers and helpers

· Allocation for education increased by24%. Rs.21,000 crore allocated for Sarv Shikshya Abhiyan registering an increase of 40%

· 1500 institute of higher learning to be connected by March 2012 with Knowledge Knowledge Network.

· National Innovation Council set up. Additional Rs.500 crore for National Skill Development Fund

· Plan allocation for health stepped up by20%

· Indira Gandhi National Old Age Pension Scheme liberalized further

· Rs.200 crore for Green India Mission

· Rs.200 crore for cleaning of rivers

· Rs.8000 crore provided for development needs of J&K

· 10 lakhs Aadhaar(UID) numbers to be generated everyday from 1st October

· Fiscal deficit kept at 4.6% of GDP for 2011-12

· 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 IT exemption

· Surcharge on corporate lowered to 5%

Source;PIB

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Boost to Housing Sector Finance

   Various steps have been taken in this year’s union budget to give a boost to housing sector finance. The existing scheme of interest subvention of 1% on housing loans has been liberalized by extending it to housing loan upto Rs. 15 lakh where the cost of the house does not exceed Rs. 25 lakh from the present limit of Rs. 10 lakh and Rs. 20 lakh respectively.

   On account of increase in prices of residential properties in urban areas, it has been proposed to enhance the existing housing loan limit from Rs. 20 lakh to Rs. 25 lakh for dwelling units under priority sector lending.

   To provide housing finance to targeted groups in rural areas at competitive rates, the budget proposes to enhance the provision under Rural Housing Funds to Rs. 3000 crore from the existing Rs.2000 crore.

   The Union Finance Minister Sh. Pranab Mukherjee while presenting this year’s budget has also proposed the creation of a Mortgage Risk Guarantee Fund under Rajiv Awas Yojana. This would guarantee housing loans taken by Economically Weaker Sections and Low Income Group households and enhance their credit worthiness.

   To prevent frauds in loan cases involving multiple lending from different banks on the same immovable property, the Government has facilitated setting up of Central Electronic registry under the SARFAESI Act, 2002. This Registry will become operational by March 31, 2011.

Source;PIB

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FM holds Pre Budget Consultations with Different Trade Union Groups

Union Finance Minister Shri Pranab Mukherjee held a meeting with Trade Unions’ Group to get their inputs for General Budget 2011-12, here today. This was the third meeting in the series of pre-Budget consultations held by Finance Minister with the stakeholders of different sectors. First meeting was held on Friday, the 7th January, 2011 with the stakeholders of agriculture sector and the second meeting in the series was held yesterday with captains of Indian industry.

Welcoming the representatives from different Trade Unions, the Finance Minister said in his opening remarks that growth in employment opportunities is vital for ensuring an inclusive development process and sought their policy suggestions to help the Government move rapidly in that direction. Shri Mukherjee said that one of the biggest challenge before our nation today is to find the correct balance between the need for economic growth, sustainability of our resources and natural habitats and the opportunities that need to be created for bringing the more disadvantaged and vulnerable section of people into the mainstream of the development process. He said that we also have to address the growing aspirations of young India. We need to have sustained higher economic growth with inclusive development, the Minister added.

Finance Minister Shri Mukherjee further said that to achieve that end, the Central Government has adopted a multi-pronged strategy focusing on rapid growth for reducing poverty and creating employment opportunities, improving access to essential services in health and education especially for the poor, and empowerment through education and skill development. He said that Schemes like the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Pradhan Mantri Gram Sadak Yojana, Bharat Nirman, Jawaharlal Nehru National Urban Renewal Mission among others launched by the Government in the last few years have shown encouraging results in meeting some of the requirements of the disadvantaged sections of the society.

Shri Mukherjee said that while we have the advantage of having a young population, the realisation of the demographic dividend would depend on the growth of employment opportunities and on availability of the required skills in a healthy and educated labour force. He said that the Government recognises that without proper skill development, a burgeoning population could actually work to our disadvantage. The Finance Minister said that the National Skill Development Mission which comprises a comprehensive skill development programme covering the entire country has been launched and mandated to train 500 million skilled persons by the year 2022. This would help in meeting the industry requirements and in increasing the employability of our youth, the Minister added.

The Finance Minister Shri Pranab Mukherjee said that we have been making significant increase in our budgetary allocations for anti-poverty programmes, but these have to support the desired outcomes. We have to make a quantum improvement in the implementation of public welfare and development programmes, he said. Shri Mukherjee said that initiatives like the rolling out of unique identity numbers by the Unique Identification Authority of India will help in that regard.

Shri Mukherjee further said that on the employment front, the quarterly reports released by the Labour Bureau for July-September 2010 show a continuing upward trend. At the sectoral level, textile sector, IT / BPO industry, automobile industry and metal industry show an encouraging growth in employment, he added. The Minister said that a higher growth in employment has also been recorded in the export oriented units. Shri Mukherjee said that these are good signs that confirm that the post-crisis recovery of our economy has taken root.

Shri Mukherjee later invited the suggestions from the representatives of different Trade Union Groups for addressing the short and medium term concerns in our labour markets and in the rest of the economy.

After that the stakeholders from different trade unions gave their suggestions for consideration for General Budget 2011-12.

Source;PIB

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