Thursday, March 10, 2011

Finance Bill 2011

FINANCE BILL, 2011
PROVISIONS RELATING TO FINANCE BILL, 2011
Introduction

The provisions of the Finance Bill, 2011 relating to direct taxes seek to amend the Income-tax Act, 1961, inter alia, in order to,-

(i) increase the basic exemption limit in the case of individual taxpayers;
(ii) lower the qualifying age of senior citizens from 65 years to 60 years and also to increase the current exemption limit in such cases;
(iii) provide a higher exemption limit to very senior citizens above the age of 80 years;
(iv) reduce the surcharge on tax in the case of companies;
(v) provide impetus to overseas borrowings by facilitating setting up of infrastructure debt funds;
(vi) rationalise the taxation of income distributed by debt mutual funds;
(vii) levy Minimum Alternate Tax (MAT) on developers of SEZ and units operating in them;
(viii) levy Alternate Minimum Tax (AMT) in the case of Limited Liability Partnerships;
(ix) provide a set of counter-measures in relation to jurisdictions with which there is a lack of effective exchange of information;
(x) provide a concessional rate of tax on dividends received by Indian companies from their foreign subsidiaries during
               
Read complete Memorandum of Budget 2011-12 in PDF format as below:-

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