Major Tax Proposals in Union Budget 2011

1. Personal income tax exemption limit increased from Rs.1.6 lacs to Rs.1.8 lacs
2. For senior citizens from 60 years upto 80 years exemption upto Rs.2.5 lacs
3. For senior citizens beyond 80 years exemption upto Rs.5 lacs
4. Surcharge on Corporate income tax reduced to 5% from 7.5%
5. MAT - Minimum Alternate Tax increased from 18% to 18.5% of book profits
6. Dividend Distribution Tax u/s 115o will be reduced because of reduction in surcharge to 5% from 7.5%
7. No change in Excise Duty Rates
8. No change in Service Tax Rates
9. CST to remian at 2% - no roadmap provided for reducing / scrapping of this 2%
10. Rates of customs duties retained
11. 15% tax on foreign company dividend