Budget Highlights 2010

sumitG (entrepreneur) (80 Points)

26 February 2010  

  Budget Highlights

 
 
 
 

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Minimum alernate tax raised to 18%
   

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Customs duty on gold, platinum imports raised to Rs 300 from Rs 200
   

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Service tax to GDP ratio is 1%
   

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Net revenue gain of Rs 43,500 cr from customs, excise proposal
   

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Direct tax proposals to give loss of Rs 26,000 cr; indirect tax to yield gain if Rs 45,000 cr
   

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News agencies exempt from service tax
   

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Some services hitherto not taxed would be brought under the purview of new Service Tax
   

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Service Tax rates unchanged at 10%
   

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No import duty on some equipment in road projects
   

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Cut in duty for photovoltaic units
   

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External commercial borrowing will be available for food storage industries
   

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Clean energy cess on domestic, imported coal
   

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Markets rally; Sens*x up over 300 pts
   

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Peak customs duty remains unchanged at 10%
   

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Central excise on LED lights halved to 4%
   

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Agricultural seeds exempt from service tax
   

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Partial rollback of excise duty on cement
   

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Full excise cut on electric cars
   

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For solar mission, solar power generating units rates are to be reduced by 5%
   

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Cut on personal tax rates means saving of Rs 50,000 for income up to Rs 8 lakh
   

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Partial rollback of excise duty relief on large cars
   

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Peak excise duty hiked from 8% to 10%
   

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Market borrowing were up to 3,45,000 cr. Enough to meet credit need of private sector
   

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Duties on smoking and non-smoking tobacco products up
   

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Excise duty on large cars, SUVs, multi utility vehicles hiked
   

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Petroleum products: basic excise duty of 5% crude, 7.5% on diesel & petrol; 10% on other products
   

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Structural changes in excise duties of tobacco, propose to extend excise duty
   

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Revenue loss of Rs 26,000 cr on a/c of direct tax proposals
   

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Surcharge for companies reduced to 7.5%
   

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Professionals with Rs 15 lakh income need account audit
   

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Due to direct taxes, result in a revenue loss of Rs 26,000 cr
   

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Threshold limit for TDS applicability to be rationalised
   

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Extended scope of presumptive taxes up to Rs 40 lac
   

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Real estate sector now gets 5 years for completion instead of 4 years before
   

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To boost tourism investment, offers investment linked tax deductions

   

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Addl Rs20,000 deduction available for investment in infra bonds
   

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Reduces current surcharge of 10% on domestic comp to 7.5%
   

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Minimum Alternate Tax up from 15% to 18% on book profits
   

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Personal income tax: Above Rs 8 lakh, tax at 30%
   

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Personal income tax: Income between 5-8 lakh: Tax at 20%
   

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Personal income tax: Nil for income up to Rs 1.6 lakh, 10% for income bet Rs 1.6 -5 lakh

   

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I-T dept to notify simple two-page Saral 2 form for individuals for current year
   

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Automation of excise, service tax already rolled out
   

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FY11 market borrowing pegged at Rs 3.45 lakh cr
   

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Govt to set up apex level Financial Stability and Development Council
   

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FY13 fiscal deficit seen at 4.1%
   

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Fiscal deficit seen at 4.8% in FY12
   

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Allocates Rs 1,900 cr for UID project
   

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Fiscal deficit pegged at 5.5% of GDP
   

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Planned expenditure up 15% over 2009-10
   

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Increase in non-planned exp up only 6%
   

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Total exp proposed up 8,7% over 2009-10, to Rs 11 lakh cr
   

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Taskforce to counter problems in Maoist affected areas. Adequate funds will be allocated
   

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Allocation to Defence over Rs 147,000 crore

   

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Technology advisory group to be set up under Nandan Nilekani
   

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Smart card extended to NREGA
   

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RBI to dole out more banking licences: Pranab
   

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Sign language training centre for hearing impaired
   

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Rs 4,500 cr for program of social justice, sr citizens, backward classes, handicapped
   

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Rs 100 cr allocated for women farmers
   

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Exclusive skill dev prog in textile and garment sector
   

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Rs 48,000 cr for Bharat Nirman plan
   

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Asks state govt to contribute for social security to workers in unorganised sector
   

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Infra stocks spurt on higher allocation
   

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To allocate Rs 22,300 cr to Health Ministry

   

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Allocates Rs 100 cr for new pension scheme, to benefit 100,000 low income citizens
   

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Khadi institutes get Rs 400 cr
   

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GOI sign $150 mn deal with ADB for implementing Khadi programme
   

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Rajiv Awas Yojana now ready' gets Rs 1,270 cr for FY11
   

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Rs 7300cr in 2011 for backward sections
   

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GST, Direct Taxes Code from April 2011
   

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Housing loan: 1% interest subvention scheme extended, allocation Rs 700 cr
   

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Urban dev allocation up more than 75% to Rs 5400 cr
   

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Allocates Rs 1,200 cr for drought mitigation
   

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Indira Awas Yojana: allocation up by Rs 10,000 cr
   

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NMDC, SVJN stake sale to fetch Rs 25,000 cr in FY10

   

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NREGS gets Rs 40,100 cr in FY11
   

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Rs66,1000 cr allocateds for rural development in FY11
   

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IIFCL disbursements at Rs 9000 cr by March 2010

   

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School education outlay for FY11 at Rs 31,000 cr
   

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States to get Rs 3,675 cr for primary education at rural level
   

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To set up coal regulatory authority
   

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Spending on social sector at Rs 137,000 cr
   

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Rs 25,000 cr allocated to develop rural infrastructure
   

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Growth to exceed 7.2% in this fiscal
   

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Final FY10 GDP figure maybe higher than estimate of 7.2%
   

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To set up National clean energy fund
   

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Plan outlay for Renewable energy ministry up 61%
   

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Power allocation doubles to Rs 5,100 cr

   

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To set up 5 more mega food park projects
   

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Allocation for road tansport Rs 19,894 cr

   

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Farm loan repayment extended by 6 months
   

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ECB to be available for cold storage
   

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To provide Rs 400 cr to boost farm output in eastern India
   

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Timely repayment of crop loans: subvention raised from 1% to 2%
   

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Govt is committed to growth of SEZ to promote exports
   

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Proposes allocation of Rs 200 cr for climate-resilient agricultural program
   

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Extend 2% interest subvention for exports for another year
   

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FY11 capital for PSU banks at Rs 16,500 cr
   

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Extends interest subvention of 2% for handloom, handicrafts for 1 more yr

   

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Propose new bill to address problems in corpoate sectors
   

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Will augment assistance to RRBs to strengthen rural sector
   

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RBI may give license to some more private sector players and NBFCs
   

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Rs 1,900 cr addl capital in four PSU banks
   

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Ownership and control clearly defined in FDI policy
   

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To discuss Kirit Parikh report in due course
   

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Subsidy for fertiliser sector to increase farm productivity
   

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Govt to raise Rs 25,000 cr this year to meet cap expenditure requirements
   

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GST and DTC can be introduced in April 2011
   

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Steps to reduce public debt, paper to be presented in 6 months
   

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Signs of food inflation going to non-food items
   

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Need to review stimulus, move to fiscal consolidation
   

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Double digit food inflation in 2009
   

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Export figures encouraging; pvt investments can be expected
   

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Concerned over emergence of double digit food inflation
   

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18.9% growth rate in manufacturing sector in 2009
   

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Final figure may be higher if earnings in last quarters are strong
   

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Need to make recovery
   

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Growth slows down to 6% in Q3 vs 7.9% in Q2 this fiscal
   

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Focus shifts to non-governmental actors
   

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3rd challenge: relates to problems in government system
   

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2nd challnge: harden economic growth to make dev more inclusive
   

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1st challenge: quickly revert to higher GDP growth path of 9%, cross double digit growth

   

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Economy is in a better position than a year ago, however, challenges remain
   

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Uncertainity was there on account of delay in monsoon, concerns about production and food prices
   

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Pranab Mukherjee starts announcing Union Budget

   

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Bond yields steady ahead of Budget