Sensex regains; Service tax retained at 10% in budget 2011

The benchmark Nifty moved in top gear again during announcements of indirect taxes by Finance Minister Pranab Mukherjee in his Union Budget 2011-12 speech.

He said service tax retained at 10% and decided to keep standard rate of excise duty at 10%. FM sees FY11 fiscal deficit at 5.1% and FY12 at 4.6%. "FY12 fiscal deficit will be at Rs 4.12 lakh crore." 

On indirect taxes, FM said basic food, fuel exempted from central excise duty. "Base rate on excise duty raised to 5%. 10% excise duty is on branded garments and peak rate for customs duty unchanged."

The 30-share BSE Sensex gained 232 points at 17,932 and the 50-share NSE Nifty surged 71 points to 5,374.

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Sensex choppy; MAT rate raised from 18% to 18.5% in budget

The 30-share BSE Sensex regained further amid extreme volatility after announcement of direct tax by Finance Minister Pranab Mukherjee in his Union Budget 2011-12 speech.

FM said exemption limit for general tax payers raised to Rs 1.8 lakh from Rs 1.6 lakh and qualifying age for senior citizens reduced to 60 vs 65. For the companies, the government has reduced current surcharge of 7.5% on domestic companies to 5% and proposed to levy MAT on developers of SEZ