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To Be Presented By:

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GDP growth estimated at 6.9% in

real terms in 2011-12

For Indian economy, recovery was interrupted this yeardue to global Issues

Current account deficit at 3.6% of GDP for 2011-12 and

reduced net capital inflow put pressure on exchange rate

Deterioration in fiscal balance in 2011-12 due to slippagesin direct tax revenue and increased subsidies

Growth in industrial activity at 4.5% a concern, with

contribution to GDP slipping to 25%

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Fiscal consolidation

Increase in GDP

Enhance infrastructure

Tame inflationary pressures

Raise money through Dis-investment

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0

10

20

30

40

50

60

70

80

2007-08 2008-09 2009-10 2010-11 2011-12

12 10.5 9.7 9.5 8.67

38.134.3 36.6

3230

26.325.8

25.8

25.625

Taxation Investments Industrial Growth

0

2

4

6

8

10

12

2007-08 2008-09 2009-10 2010-11 2011-12

Average Consumption Rate

Average Consumption Rate

Taxation a major contributor to the revenue

Encourage Consumption to generate demand within the

country

Enhance Industrialization and Business opportunity foroverall growth and creating employment

Boost Investment to channelize funds effectively in the

economy

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Reduce in Fuel subsidy by Rs. 24,910 crore (36.4%) to

43,580 crore

Reduce in Fertilizer subsidy by Rs.6500 crore (9.3%) to

60,974 crore

Increase in service tax rate from 10 % to 12%

Service tax application which include frivolous services

No excise duty on branded silver

Jewellery and reduced on branded

readymade garments (4.6% to 3.5%)

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1% TCS by seller if cash sale valued above Rs 2lakhs of

jewellery, bullion, etc

Excise hiked from 10.3% to 12.36%, from 5.15% to 6.18%,and 1.03% to 2.06%

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Small Equity investment scheme? With bigger T&C*

Our immoveable property under government, all thanksto TDS..

Securities transaction tax reduced, But only

on delivery

Capital markets, in simple market form

Personal Loan or Headache Loan

No tax sops for new life insurancepolicies with annual premium over 10%

of sum assured (currently 20%) excluding

loyalty bonus

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Bigger Slab with smaller benefits

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Interest in your account up to Rs.10,000/-

Senior Citizen became younger

Part of your health check just got tax free

Life Insurance is now less Life Tax Saver

GST making everyone wait like people

do at CST (Mumbai)

Donating Becomes Costly Re-opening of Assessment for Foreign

assets to 16 years

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Alternate Minimum Tax now on partnerships, sole

proprietorships too

Penalty up to 90% on undisclosed income found duringsearch

All foreign assets must be declared

I-T Act amended retrospectively

to tax 'offshore M&A deals' involvingtransfer of assets in India

Example: Hutch-Vodafone transaction

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Withholding tax on interest on ECBs

reduced from 20% to 5% for power,

airlines, roads etc for 3 years

A year's extension for exemptionunder section 80IA for power firms;

also for lower tax on overseas

dividend

Small service provider exemptionincreased from Rs 10 lakhs to Rs 50

lakhs

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