INCOME TAX BUDGET 2011 HIGHLIGHTS

The budget  2011 proposed following changes in relation to Income Tax:

1. The age for the purposes of recognizing senior citizen under the Act has been reduced to 60 Years from 65 Years.

2. The Basic Exemption Limit has been raised as follows:

For Senior Citizens (=> 80 Years): rs. 5,00,000

For Senior Citizens (=>60 < 80 Years) - Rs. 2,50,000

For Woman Assessees: Rs. 1,90,000

For others: Rs. 1,80,000

Slab rates remain unchanged

3. Surcharge on Domestic Companies reduced to 5% and Other Companies to 2%

4. The limit for regarding a receipt from trade, commerce or business as non charitable has been raised from Rs. 10 Lakhs to Rs. 25 Lakhs [From Ay 2012-13].

5.Weighted Deduction for Approved Scientific Research U/s 35 (2AA) has been raised from 175% to 200% [from AY 2012-13]

6. DDT to be applicable to SEZ Units w.e.f. 1.6.11

7. MAT to be applicable to SEZ Units w.e.f. AY 2012-13

8. Exemption to Power Sector u/s 80IA(4) extended till 31.3.2012.

9. MAT Increased to 18.5%. Alternate Minimum Tax @ 18.5% levied on LLP.

10. Salaried Class not having any other source of Income are not required to file their return of income w.e.f 1.6.11 subject to provision of s. 139(1C)