Key Highlights of Union Budget 2010-11
Economy
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Business sentiment weak at the time of last Budget
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Averted crisis, Indian economy far better situation
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Short-term global outlook bleak during FY10 Budget
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Need to make recovery broad based in coming months
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Economy can achieve 10% GDP growth
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Indian economy is in a far better situation.
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Need to review stimulus, go back to fiscal prudence
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To follow calibrated exit strategy
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First challenge is to get to the high GDP growth path
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Efforts to lower inflation in next 2 months
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GDP rebounded in Q2FY10
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Renewed momentum in MFG led recovery
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High fuel prices added to inflationary pressures
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Q3 GDP at 6% Vs 7.9% (QoQ) – expectation was 7.2%
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Apr 09 –Dec 09 GDP at 6.7% vs 7.1%
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Manufacturing Output up 14.3% vs 1.3%(YoY)
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Agriculture Output at -2.8% vs -1.4%(YoY)
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Construction output up 8.7% vs 3% (YoY)
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Divestment target of 25000 Crs in FY10 & Rs.40,000 Crs in FY11.
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Focus to improve food security and health care systems
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Emergence of double digit food inflation a concern
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$20.9 bn FDI inflows during Apr-Dec '09
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Fiscal deficit revised to 6.9% in FY10.
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Rolling targets of fiscal deficit at 4.8% in 2011-12 and 4.1% in 2012-13
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15% increase in plan expenditure and 6% in non-plan expenditure
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Fy11 Net market borrowing pegged at 3.45 lakh cr
Financial Services Sector
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RBI mulling over giving banking liscense to pvt players, nbfcs
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Sets aside Rs 16500 cr for PSU banks to get minimum 8% tier 1 capital by March 2011
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Repayment tenure for farmer loans extended by 6 months to June 30th 2011
Infrastructure
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Road transportation kitty increased 13% to Rs 19894 cr
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Budget allocates 1.73 lakh cr for infrastructure
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Govt allocates Rs 16500 cr for railways
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Delhi-Mumbai industrial corridor taken up for development
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To set up 5 more mega food park projects
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More than doubled the allocation to power sector
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Government to set up coal regulatory authority
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To establish national clean energy fund
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Propose to hike allotment for renewable energy by 61%
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Funds for power allocation raised from Rs 2232 cr to Rs 5132 cr
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Govt to have a coal regulator for allocation of coal blocks
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Govt to facilitate 20000 MMW of solar power by 2022
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44% of total plan outlay allocated to infrastructure.
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IIFCL to double refinancing to banks for infra
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Allocation for urban development up 75% from Rs 3062 cr to Rs 5400 cr
Taxation
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Government in position to implement direct tax code and GST from April 1 2011
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Deduction of Rs 20000 on investment in infra bonds
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Change in TDS threshold limits
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Interest rate on TDS hike to 18% from existing 12%
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Change in slabs for Tax Audit
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Weighted deduction on R&D raised to 200% from 150%
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No tax on Income up to Rs 1.6 lacs
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Current surcharge on companies reduced to 7.5%
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Minimum Alternate tax hiked to 18%
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30% tax on income above Rs 8 lacs
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20% tax on income between Rs 5 lacs to 8 lacs
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10% tax on income between Rs 1.6 lacs to 5 lacs
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IT tax slabs broadened
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IT dept to notify Saral 2 form for individual tax payers
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New Corporate Tax Rate at 33.21%
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Online news agencies to attract service tax
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Service Tax rates unchanged
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Account auditing for all income above Rs 15 lacs
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More services to be brought under tax net
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Rationalisation of customs duty on gaming software
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Toys exempted from excise duty, to become cheaper
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Jewellery to be more expensive
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Monorail granted project import status
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CDs to be cheaper
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Excise duty on CFL halved to 4%
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Refrigerators to be costlier
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Customs duty on Gold and Platinum hiked
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Televisions to be costlier
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Mobile phones to become cheaper
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Peak customs duty unchanged at 10%
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Cement to be costlier
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Air conditioners to be costlier
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Excise on all non smoking tobacco raised
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7.5% duty on petrol and diesel restored
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5% duty on crude petroleum restored
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Fuel prices likely to go up
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Excise duty on petrol and diesel raised to Rs 1/litre
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Cigarettes to be costlier
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Excise on large cars,SUVs, MUV raised to 22%
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Partial rollback in Excise Duty from 10% to 8%
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Excise on large cars,SUVs, MUV raised to 22%
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Presumptive tax limit raised to Rs 60 lacs
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Investment linked deduction benefit for 2 Star hotels
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