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Discuss Budget 2009 and its implication!!

Admin (CCI Team) (12905 Points)

05 July 2009

Discuss budget 2009 and its implications here!!

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31 Replies

BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 05 July 2009

THEY WILL INCREASE SLAB RATE 30K, HOPE REMOVE SURCHARGE AND FBT...INTRODUCE STANDARAD DEDUCTION AGAIN....

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praveen (Chartered Accountant) (6971 Points)
Replied 06 July 2009

yeah and dont forget increase in Excise and Service tax.

(Guest)

There are some relaxationin FBT and limit for saving U/s 80 C from 50k and Service tax may be increase

Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 06 July 2009

Dear Admin,

I think in general, the threshold limit for taxable income will be increased and the service tax rate will be brought to 12.36% as it was prior to 24-Feb-09.

(Guest)

As per my understanding : -

1). FBT may be removed completely.

2). Home loan interest - limit on deduction of interest may be increased to Rs. 2,50,000/- .

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Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 06 July 2009

Budget 2009-10 Highlights:

· Maintaining overall excise, customs and service tax

· Custom duty on set-top boxes is now 5%

· Tax holiday extended for commercial production of natural gas

· Political funding will get 100% tax deduction

· CTT abolished

· National Pension Scheme exempted from STT

· MAT reduced to 15% of book profits, MAT tax credit increased from 7 years to 10 years

· 4% excise duty on cotton restored

8% excise duty on man-made fibers brought back Maintaining overall excise, customs and service tax reduced

mohan (Article) (68 Points)
Replied 06 July 2009

FBT CDT scrapped, Surcharge scrapped and MAT increased to 15% , tax exemption for woman increased by 10000 for senior citizen by 15000 and for others 10000

no change in corporate taxation except presumtive taxation of 8% and no need to pay advance tax.

Rahul (CA Final Student) (280 Points)
Replied 06 July 2009

Highlights

Budget speech completed. Finance Bill-II 2009 introduced.

Customs duty on bio-diesel reduced.

Silver to cost more.

Tax to be levied on Law Firms.

Textile units to receive tax holiday.

LCD TVs to cost less. Custom duty on LCD TVs cut from 10% to 5%.

Set-Top Boxes to cost more. Customs duty of 5% on set-top boxes.

To extend tax holiday for commercial production of mineral oil and natural gas.

Enhance budgetary support by Rs 40,000 cr.

Fringe Benefit Tax abolished.

Commodity Transaction Tax abolished.

Personal income tax exemption hiked by Rs 10,000.

No surcharge of 10% on personal income tax.

Centralised processing center at Bengalooru to streamline taxation.

No change in corporate tax.

Increase in exemption slab for senior citizens by Rs 15,000.

Fiscal deficit at 6.8% of GDP.

Proposes Rs 500 cr for rehabilation of displaced persons of northern and eastern areas of Sri Lanka.

Aila Relief proposed at Rs 1,000 crore.

Increased allocation for higher education. New IITs to be set up. Rs 2,113 cr for IITs and NITs.

Rs 25 cr each for AMU campuses in Murshidabad and Mallapuram.

Defence outlay goes up. One lakh dwelling units for paramilitary forces personnel to be constructed.

Allowances to para-military forces at par with defence forces.

One rank, one pension for ex-servicemen.

Allocation for Commonwealth Games to be raised to Rs 3472 crore

Online job exchange to be started with private partnership.

Unique ID plan to roll out in 12-18 months.

Top people from private sector to be given responsibility of vital national projects.

Interest subsidy for home loans up to Rs 1 lakh.

All BPL families to be bought under one smart card program.

50% of all rural women to be brought into self-help group programmes.

Rural mega clusters in Bengal and Rajasthan.

To add handloom clusters in West Bengal and Tamil Nadu.

75% hike in irrigation projects.

Rural Housing: Allocation to Indira Awaas Yojna hiked by 63% to Rs 8,883 cr. Rs 7000 crores for rural electrification scheme.

Rs 31,100 crore allocation for NREGA. NREGA gave employment opportunities to more than 4.479 cr households.

Rs 100 cr one-time grant to expand banks in non-banking areas.

Banks, insurance to stay with Govt. Banking network to be expanded.

Expert panel to look into petroleum product pricing. Domestic oil prices must be in sync with global prices.

'Aam Admi' is the focus of all our programmes and schemes: Pranab

Tax system should be such that it shold encourage voluntary compliance.

Income Tax forms to be made user-friendly. Saral-II forms to simplify taxation process.

Export Credit Guarantee scheme extended till March 2010.

Stimulus package to print media extended till December 31.

Farmers loan interest to come down to 6%. Interest subvention scheme for farm loans to be manitained.

Additional budget allocation for farmers.

IIFCL will refinance 60% of commercial bank loans in PPP. IIFCL to look at infrastructure needs.

Mumbai flood management allocation hiked to Rs 500 cr.

87% rise in urban renewal mission. Housing allocation hiked.

Fiscal stimulus at 3.5% of GDP

Allocation for NHAI up 23%

Trade in goods and services doubled in 2008

Job creation hit due to economic slowdown: Pranab

Govt took 3 stimulus packages so far. Two worst quarters of the global economic crisis is now behind us: Pranab

One budget can not solve all problems: Pranab

Foreign capital inflow is important

Increased focus on growth and encourage nation's development

Sustain growth rate of 9% for a longer period. Farm sector growth at 4%

Union Finance Minsiter begins his speech. This is Pranab Mukherjee's 4th budget.

Cabinet approves Union Budget.

Taxes

Service tax levied on law firm

Custom duty on gold re-imposed

Customs duty to be reduced on drugs for heart treatment

No new tax on edible oil imports

4 per cent excise duty on cotton products restored

Customs duty on bio-diesel reduced

Life saving devices on heart contidion exempted from custom duty

Small business exempt from advance tax

To maintain overall customs and excise duty structure

Tax holiday to natural gas extended

Tax slab raised

MAT hiked to 15 per cent of book profit

Commodity transaction tax abolished

New pension scheme

Tax holiday for exporters extended untill 2012

Personal income tax exemption hiked by Rs 10,000

Abolish fringe benefit tax

Tax holiday extended for textile units

Goods and services tax from April 1, 2010

Share of direct taxes has increased to 56 per cent in 2008-09

Federal Tax/GDP ratio is 11.5 per cent

No surcharge of 10 per cent on personal income tax

Increase in exemption slab for senior citizen

No change in corporate taxes

Hike in IT exemption for women to Rs 1,90,000

Govt committed to tax reforms

Increase automation in direct tax collection

New tax code in 45 days

Centralised processing center at Bengalooru to streamline taxation

Income tax forms should be user friendly

Tax system should be such that it shold encourage voluntary compliance

Saral form 2 will be introduced

Markets

Markets in the red.

Sens*x down more than 600 pts

Nifty down more than 200 pts

Mid-cap, Small-cap stocks down

Prices

Branded jewellery to become cheaper

Mobile phone accessories to get cheaper

Set-top box to cost more

Silver to cost more

Reduce custom duty on LCD TVs cut from 10 per cent to 5 per cent

Customs duty of 5 per cent on set top boxes

Abhishek gupta (CA & CS) (285 Points)
Replied 06 July 2009

Originally posted by :Þräßéêr
"	Dear Admin, I think in general, the threshold limit for taxable income will be increased and the service tax rate will be brought to 12.36% as it was prior to 24-Feb-09.	"

Omkar (Student) (255 Points)
Replied 06 July 2009

This Budget is Ok but not as per public expectation.

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Dilip Kadam (services) (119 Points)
Replied 06 July 2009

Pls udate about Transport of Goods through road.

it is exempted

Regards

Dilip Kadam

Balaji R K (Salaried) (158 Points)
Replied 06 July 2009

But for FBT budget is not that much attractive for both Corporates and Individuals. The expectations were more from the finance ministry however the outcome of the budget will not satisfy the Corporates and Individuals on the whole.