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Friday, February 26, 2010

Budget Special Highlights - 2010-2011


Highlights

  • Service tax to result in net revenue gain of Rs 3000 cr
  • Customs duty on silver at Rs 1500/kg
  • Custom duty on gold to be reduced
  • Mobile phones to be cheaper
  • No capital gains tax on conversion of a business entity into Limited Liability Partnership
  • To encourage manufacture of accessories such as battery chargers and hands-free sets, the concessions will be extended the mobile phone sector
  • 5% customs duty on crude petroleum back
  • Peak customs duty unchanged at 10%
  • FM raises central excise duty on all non-petroleum products from 8 to 10 per cent
  • Revenue loss of Rs 26,000 crore on direct tax proposals
  • Stimulus-led excise duty rollback partially reversed
  • FM allows housing projects to complete projects in 5 years instead of 4 years to avail tax break
  • One-time interim relief to housing and real estate sector
  • Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations of their accounts
  • Uproar in Parliament over petrol price rise
  • To levy excise duty of Re 1/litre on petrol
  • New tax rates would offer relief to 60 per cent of tax-payers
  • CET on petroproducts hiked by Re 1
  • Direct tax receipts to fall by Rs 56,000 cr
  • Standard excise rate up from 8 to 10%
  • Large cars, SUVs excise up to 22% from 20%
  • Sops for real estate, housing projects extended by a year
  • Partial roll back the rate reduction in central excise
  • Direct tax scheme to result in revenue loss of Rs 26,000 cr
  • Compliance burden reduced on professionals and entrepreneurs
  • Corporate tax surcharge down from 10 to 7.5%
  • New income tax slabs will bring relief to the middle class
  • Rs 20,000 additional tax break for infra bonds
  • Minimum Alternate Tax hiked to 18%
  • R&D allocation increased 200%
  • To unveil new Saral 2 form for salaried individuals in two pages
  • Deduction of additional 10% for investment on infrastructure bonds
  • Tax slabs: Broadening 1.6 lakh - Nil above 1.6 lakh-up to 5 lakh 10%
  • 5-8 lakh- 20% above 8 lakh- 30%
  • Tax paying interface to be de-cluttered
  • States to be offered assistance to computerise commercial taxes
  • Greater transparency in tax administration targeted
  • Centralized Tax Centre at Bengaluru fully functional
  • Fiscal deficit at 5.5% for FY'11
  • Rolling target for fiscal deficit 4.2%
  • Gross tax receipts at Rs 7.46 lakh cr
  • New symbol for Indian Rupee
  • Tech advisor group under Nandan Nilekani
  • Allocation for development of micro and small scale sector raised from Rs 1,794 cr to Rs 2,400 cr
  • Rs 2,600 cr for Minority Affairs Ministry
  • To create 50 cr skilled workers by 2022
  • Rs 1,900 cr to UID authority allocated
  • First set of UID to be issued by this year
  • Rs 19,484 cr allocated for road development, to build 20 km of highway every day
  • Subsidy for affordable housing extended
  • Skill development programme for textile and garment sector
  • Pvt sector to meet deficit in grain storage
  • 50% increase in women & child development allocation
  • Development of rural infra remains high priority area
  • Power sector allocation doubled to Rs 5130 cr
  • Rs 400 cr corpus for micro-finance scheme
  • National pension scheme allocation increased
  • States to get Rs 3,675 crore for primary education at rural level
  • Rs 400 cr corpus for micro-finance scheme
  • NREGA allocation to Rs 40,100 crore
  • National Social Security fund to be set up for unorganized sector
  • Urban Development allocation to be raised by 75 per cent
  • 20,000 mw of solar power by 2022
  • Rural development allocation to Rs 61,000 cr
  • Indira Awaas Yojana allocation raised in proportion to plain and hill area housing
  • Development of rural infra remains high priority area
  • Social sector spending at Rs 1.38 lakh cr for FY11
  • Rs 500 cr for Clean Ganga Mission
  • Rs 66, 100 cr for rural development in FY10-11
  • Allocation for school education up from Rs 26, 800 crore to Rs 31, 036 cr
  • Rs 22, 300 crore allocated for Health Ministry
  • Coal regulatory authority proposed
  • Rs 300 cr for Rashtriya Krishi Vikas Yojana
  • Bank farm loan target: Rs 3.75 lakh crore
  • Rs 200 cr To Tamil Nadu for textiles
  • Need to take firm view on opening up of the retail sector
  • National clean Energy Fund to be set up
  • Rs 200 crore to Goa as a special golden jubilee package to restore beaches and increase green cover
  • To provide 2% loan subsidy to farmers
  • Extend loan payment by calamity hit farmers
  • Rs 400cr for four-part strategy for agriculture
  • 2% interest subvention for exports extended
  • Additional banking licenses for pvt players
  • 4 pronged strategy for agriculture
  • Rs 16,500 cr capital support for PSU banks
  • Will consider Parikh report on fuel pricing
  • Goods and services tax to be introduced in 2011
  • Fertiliser subsidy to be reduced
  • GDP growth for FY'10 is seen at 7.2 pc
  • Rs 25,000 cr disinvestment target this year
  • India weathered economic crisis well
  • Direct tax code to be implemented from April 1, 2011
  • Gradual phasing out of economic stimulus
  • Pvt investment can sustain 9 pc growth
  • First challenge: Return to GDP growth
  • Manufacturing growth highest in the past 2 years
  • Indian economy is in a far better position today
  • FM is expected to simplify tax laws in 2010
  • Biggest challenge is to make the growth all inclusive
  • Need to strengthen food security
  • Pranab: Indian economy has stood through the test of time
  • Economic growth slows down to 6 pc in Q3
  • Finance Minister presents Budget 2010
  • Pranab Mukherjee presents his 5th Union Budget
  • Finance Minister Pranab Mukherjee reaches Parliament
  • Inflation is forecast to reach 10 percent in coming weeks
  • Government borrowing was forecast to rise by another 2.2 percent
  • Economists forecast India may cut its fiscal deposit to 5.6% of GDP

Taxes

  • More services to be brought under service tax net
  • Service tax to result in net revenue gain of Rs 3000cr
  • Customs duty on gold to be reduced; silver at Rs 1500/kg
  • Uniform concessional duty of 5% on all medical appliances
  • Rationalising of customs on gaming software
  • Custom duty of one of the key component of microwave oven reduced
  • Peak customs duty unchanged at 10%
  • Custom duty for importing of duplication of prints of films revised
  • No capital gains tax on conversion of a business entity into Limited Liability Partnership
  • Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations
  • Nominal duty of 4% electric cars
  • Partial rollback of excise duty on cement, cement products, large cars
  • To levy excise duty of Re 1/litre on petrol
  • R&D Corp Tax break up to 200%
  • Direct tax receipts to fall by Rs 56,000 cr
  • Pilot project for tax grievances extended to 4 cities
  • Direct tax scheme to result in revenue loss of Rs 26,000cr
  • Corporate tax surcharge down from 10 to 7.5%
  • Rs 20,000 additional tax break for infra bonds
  • Corp Min Alternate Tax up from 15 to 18%
  • New tax rates would offer relief to 60 per cent of tax-payers
  • Direct tax slabs: income upto 1.6 lakh = nil, 1.6-5 lakh = 10%, 5-8 lakh = 20%, above 8 lakh = 30%
  • Centralized Tax Centre at Bengaluru fully functional
  • Gross tax receipts Rs 7.46 lakh crore
  • Deferment of goods & service tax negative for corporates in FY10-11
  • Direct tax to be implemented from April 1, 2011
  • Simple tax system with minimum exemptions near completion
  • Indirect taxes will continue to be in focus
  • Excise duty, service tax may go up by 2%

Prices

  • More services to be brought under service tax net
  • Service tax to result in net revenue gain of Rs 3000cr
  • Customs duty on gold to be reduced; silver at Rs 1500/kg
  • Uniform concessional duty of 5% on all medical appliances
  • Rationalising of customs on gaming software
  • Custom duty of one of the key component of microwave oven reduced
  • Peak customs duty unchanged at 10%
  • Custom duty for importing of duplication of prints of films revised
  • No capital gains tax on conversion of a business entity into Limited Liability Partnership
  • Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations
  • Nominal duty of 4% electric cars
  • Partial rollback of excise duty on cement, cement products, large cars
  • To levy excise duty of Re 1/litre on petrol
  • R&D Corp Tax break up to 200%
  • Direct tax receipts to fall by Rs 56,000 cr
  • Pilot project for tax grievances extended to 4 cities
  • Direct tax scheme to result in revenue loss of Rs 26,000cr
  • Corporate tax surcharge down from 10 to 7.5%
  • Rs 20,000 additional tax break for infra bonds
  • Corp Min Alternate Tax up from 15 to 18%
  • New tax rates would offer relief to 60 per cent of tax-payers
  • Direct tax slabs: income upto 1.6 lakh = nil, 1.6-5 lakh = 10%, 5-8 lakh = 20%,
  • above 8 lakh = 30%
  • Centralized Tax Centre at Bengaluru fully functional
  • Gross tax receipts Rs 7.46 lakh crore
  • Deferment of goods & service tax negative for corporates in FY10-11
  • Direct tax to be implemented from April 1, 2011
  • Simple tax system with minimum exemptions near completion
  • Indirect taxes will continue to be in focus
  • Excise duty, service tax may go up by 2%