Our Professor Mr. R@m@sh@str! is in no mood to share his sentiments on this bud-jet. We are following him since the last 5 days and he hasn't shared a word yet. Lets look at it and understand why?
Favorites in Bud-Jet 2011 - Higher exemption limit of Rs 5,00,000 for very senior citizens, who are 80 years or above.
- Senior Citizen Age Limit reduced from 65 years to 60 years for Income Tax purposes
- Tax exemption limit for senior citizens raised to Rs 2.5 lakh from 2.4 lakh
- Surcharge for companies cut to 5 per cent, from 7.5 per cent
He could be happy because he can now start his own dream company and he would no longer require to hop in colleges. He might be joyous with the fact that he can ask his parents, uncles and aunts to be his sleeping partners. (A request not to take this note otherwise, better read Types of Partnership in The Partnership Act to form a discreet opinion).
- Allocation to Sarva Shiksha Abhiyan increase by 40 per cent to Rs 21,000 crores
- Allocation for education increased by 24 per cent over current year
It is easier to have a say in Government and use the benefits of his core competence (Education-Specialist) and his partner's core-competence (Age - Factor) for getting grants and aid.
- Duty reduced on hybrid & electric cars along with batteries imported for such vehicles
The perceived benefit is high. This could be used as a perk to all his ageing partners and most of all, it would cost less.
Flip-sides in Bud-Jet 2011
- Health Check-Ups in Private hospitals to become expensive
- Tax on life insurance service providers could be negative for insurance companies
- Travel, Health-care to become expensive due to increased service tax
He could be afraid that the core-competence (Age-Factor) of his sleeping partners could become a liability (Health-Factor) for his upcoming teaching company as such an expense would no longer constitute as perks but salaries; which in any ways cannot be given in kind. One can imagine a condition of a business which has possibilities of heavy and sudden cash outflow.
- Lack of FDI in retail.
- EXPENSIVE: International Air Travel
- EXPENSIVE: Domestic Air Travel
- New service tax to hurt companies in hospitality
- Branded clothes may cost more
What a shame! Retail Sector was recession proof in 2008-09 and in 2009-10 which kept our economy rolling and now it has not been given any attention. He would now have to think twice before arranging business travel, business meetings, business outings with sleeping partners, colleagues and staff. We bet he might be going through his Just Dial and Tata Yellow Pages for searching Antique Shops (Excise duty to be reduced from 10% to 5% on parts of specified machinery and No import duty on ship parts)
- AC restaurants serving liquor to come under service tax net
Everyone wants to celebrate success. He wanted to celebrate his reunion and share his success the same way it is shown in one of the Master Card's Ad. We wonder whether he would be able to make it or call the same at home, just like Khushwant Singh.
