Budget 2011: Smiles and frowns, in a nutshell

There were not too many expectations on this budget to start with. Automobile industry was almost staring at a 2% increase. It was a major relief for the industry, when it was left untouched.

There were not too many changes in the budget. Many of the changes that can come are in the future and the budget just hints at them.

Whether it is awarding new banking licences, tackling black money, a raft of bills on financial sector or a national mission on hybrid vehicles, the details are going unfold in the future.

The relief to the common man was miniscule - basic exemption limit hiked to Rs1.8 lakh, instead of the current Rs1.6 lakh. You save Rs2,000 here. No other changes in the taxation slabs.  There has been an increase from Rs2.4 lakh to Rs2.5 lakhs for senior citizens.

Now there is some news on the nomenclature. 60, and not 65, is when you now turn a senior citizen. Also, Pranabda has taken pity on the very senior citizens - those above 80 - and has given them a exemption limit of Rs5 lakh.

Infra Bonds:  `20,000 additional investment in infrastructure bonds, which was available under Sec 80CCF, is being extended for one more year.

NPS goodies continue: Contributions to NPS under “Swavalamban” from someone from the unorganised sector was eligible to receive a government contribution of Rs1,000 per annum for five years. Also, the exit norms for people opting for this scheme have been relaxed in this budget - from 60 to age 50 or a minimum tenure of 20 years, whichever is later. This benefit is available for those who enrolled in FY 2010-11 and also for those who enrol in FY 2011-12.

Housing: Interest subvention (subsidy ) of 1% for loans has been increased from Rs`10 lakh up to Rs15 lakh, if the cost of the house does not exceed Rs25 lakhs (previously `20 lakh)… i.e., if you can find a property below Rs25 lakhs!

Suresh Sadagopan is a certified financial planner. He can be reached at suresh@ladder7.co.in