Highlights on budget-09-10

BUDGET Highlights 2009-10

   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