Positive's & Negative's of Budget 2011 - 2012

Positive from Budget 2011 - 2012

1. Senior Citizen Age Limit reduced from 65 years to 60 years for Income Tax purposes
2. The green orientation of the budget is a welcome positive
3. Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent
4. Direct investment in Indian Mutual Funds by any foreigner is a big move
5. MFs allowed to raise money from foreign investors is pathbreaking
6. Budget is positive for equity markets
7. Lower fiscal deficit target is commendable
8. No import duty on ship parts positive for SCI
9. Tax exemption limit for senior citizens raised to Rs 2.5 lakh from 2.4 lakh
10. Basic food and fuel and precious stones, gold and silver jewellery to be exempted from central excise duty
11. Nominal 1 per cent central excise duty on 130 items entering the tax net
12. LED to cost less
13. Government has cut many import duties to check inflation
14. No further rollback of 2008 stimulus
15. Direct cash subsidy for poor on fuel, fertilizers by March, 2012
16. Category for ‘very senior citizen’ positive for rich
17. Steel prices to come down
18. ICICI Direct: Unchanged excise is positive for auto, OEMs
19. FY 11 revenue deficit at 2.1%, sentiment positive says Nirmal Jain
20. Tax exemption limit for individuals increased from Rs 1.6 lakh to Rs 1.8 lakh
21. Exemption limit for women remains the same at Rs 2,40,000.
22. For senior citizens above 80, the tax exemption limit has been raised to Rs 500,000 (Super senior citizens)
23. For senior citizens, tax exemption limit increased to Rs 2,50,000 (Age 60+)
24. Priority home loan limit upped from Rs. 20 lakh to Rs. 25lakh

Negatives of the Budget 2011 – 2012

1. Health Check-Ups in Private hospitals to become expensive
2. EXPENSIVE: International Air Travel
3. EXPENSIVE: Domestic Air Travel
4. Tax on life insurance service providers could be negative for insurance companies
5. Travel, Healthcare to become expensive due to increased service tax
6. Lack of FDI in retail was a disappointment
7. New service tax to hurt companies in hospitality
8. Hike in export duty on Iron Ore is a negative
9. Air travel to cost more
10. Branded clothes may cost more
11. Rise in MAT to hurt RIL, GVK Power, telcos
12. FY 11 fiscal deficit above estimates, negative
13. Divestment but no privatization is timid
14. Doubled anganwaadi wages with a check on absenteeism not good.

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd