UNION BUDGET HIGHLIGHTS 10-11 - MUST WATCH

Page no : 5

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 26 February 2010

THE FINAL HIGHLIGHTS OF UNION BUDGET 2010-11

Online news agencies to attract service tax

Service Tax rates unchanged @ 10%

Account auditing for all income above Rs 15 lacs FOR PROFESSIONAL & Rs 60 lacs FOR BUSINESSES

More services to be brought under tax net

Rationalisation of customs duty on gaming software

Toys exempted from excise duty, to become cheaper

Jewellery to be more expensive

Monorail granted project import status

CDs to be cheaper

Excise duty on CFL halved to 4%

Customs duty on Gold and Platinum hiked

Refrigerators to be costlier

Televisions to be costlier

Mobile phones to become cheaper

Peak customs duty unchanged at 10%

Cement to be costlier

Air conditioners to be costlier

Oppostion walkout in Lok Sabha

Uproar in Parliament over hike in fuel prices

Excise on all non smoking tobacco raised

7.5% duty on petrol and diesel restored

5% duty on crude petroleum restored

Fuel prices likely to go up

Excise duty on petrol and diesel raised to Rs 1/litre

Cigarettes to be costlier

Excise on large cars,SUVs, MUV raised to 22%

Partial rollback in Excise Duty from 10% to 8%

Excise on large cars,SUVs, MUV raised to 22%

Investment linked deduction benefit for 2 Star hotels

Deduction of Rs 20000 on investment in infra bonds

Weighted deduction on R&D raised to 200% from 150%

No tax on Income up to Rs 1.6 lacs

Current surcharge on companies reduced to 7.5%

Minimum Alternate tax hiked to 18%

30% tax on income above Rs 8 lacs

20% tax on income between Rs 5 lacs to 8 lacs

10% tax on income between Rs 1.6 lacs to 5 lacs

IT tax slabs broadened

IT dept to notify Saral 2 form for individual tax payers

IT exemption limit enhanced, surcharge withdrawn

FY11 net market borrowings pegged at Rs 3.45 lac Crs

20 Kms of highway to be constructed everyday

FY10 budget deficit seen at 6.9% of GDP

FY12 fiscal deficit target at 4.8%

FY13 fiscal deficit target at 4.1%

More than 50% increase in funds for minority welfare

Fiscal deficit target of 5.5% in FY11

15% rise in planned expenditure

Govt to set up National Mission for delivery of justice

Gross tax receipts Rs 7.46 lac Crs

Defence capex raised to Rs 60000 Crs

Allocation to defence raised to Rs 1.47 lac Crs

Pvt sector to meet food grain storage deficit

Rs 100 Cr woman farmer fund scheme

Rs 1900 Crs allocated for UID project

Skill development programme for textile sector

Home loans up to Rs 20 lacs to get intrest subvention of 1% up to March 11

Government to contribute Rs 1000 per month for pension security

Rs 5400 Crs allocated for urban development

Rs 66100 Crs allocated for rural development

Rs 2400 Crs allocated for MSMEs

Social Security Fund to have corpus of over Rs 1000 Crs

National Social Security fund for unorganised workers

Intrest subvention for housing loans up to 1 lacs

Rs 10,000 Crs allocated for Indira Awas Yojna

Rs 1200 Crs assistance for drought in Bundelkhand

Rs 48000 Crs for Bharat Nirman

NREGA scheme allocation raised to Rs 41000 Crs

Allocation to health Rs 22,300 Crs

25% of plan allocation for rural infrastructure

Social sector spending seen at Rs 1.38 lakh Crs

Allocation for school education up from Rs 26800 Crs to Rs 31036 Crs

Allocation to power sector at Rs 5130 Crs

Rs 200 Crs for Tamilnadu textile sector

One time grant for Tirupur exports

Draft food security Bill ready

Clean energy fund to be established

Allotment for renewable energy hiked by 61%

Coal regulatory authority to be set up

Road development hiked to Rs 19894 Crs

Rs 1.73 lakh Crs, which is 46% of total plan outlay, reserved for infrastructure development

2% loan subsidy to farmers

Farm credit targets to be increased to Rs 3.75 lakh Crs

Farm loan payments to be extended for six months

Interest subvention of 2% to be extended for handicrafts and SMEs

Rs 300 Crs for agricultural impetus

Additional Rs 1,65,000 Crs for bank re-capitalisation

Intrest subvention for exports to extended for one year

RBI may give banking licenses to Pvt cos and NBFCs

FDI policy to be made more user-friendly

To discuss Kirit Parikh report in due course

Fertiliser subsidy to be reduced

Divestment target of Rs 25,000 Crs

GST to be implemented from 2011

Hope to implement Direct Tax Code from April 2011

Calibrated exit strategy for fiscal stimulus

Need to review stimulus, go back to fiscal prudence

Significant private investment inflow expected to boost GDP

Economy can achieve GDP growth of 10%

India faces a challenge of reverting to double digit growth

FY 2009-10 was a challenging year

Need to improve food security and healthcare systems

Indian economy in far better position than last year, says Pranab

Pranab Mukherjee starts Budget speech

Pranab Mukherjee arrives in Parliament

Parliament to convene at 11 am

All eyes on stimulus rollback

Pranab Mukherjee reaches North Block

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ankit jain (CA) (28 Points)
Replied 26 February 2010

what is the changes made in section 44AD OF INCOME TAX ACT AND IN SECTION 40I(A) FOR TDS

Monika Bachhawat (Chartered Accountant) (211 Points)
Replied 26 February 2010

The limit has been increasd ankit from 40 Lakhs to 60 lakhs & Rs 10 Lakhs to 15 lakhs (profeeional)

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 26 February 2010

Yup, monika is correct...

Moreover, on gold, the custom duty is hiked... can check out highlights on any site....

Monika Bachhawat (Chartered Accountant) (211 Points)
Replied 26 February 2010

JP Morgan: Very positive on budget, cut in income tax good for consumption stocks |

PWC: Encouraging to note April 2011GST rollout date, DTC date clarity good |

Swaminathan Aiyar: Pranab's budget is not too harsh, not too easy |

Kevin Watts: Budget a positive document

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Monika Bachhawat (Chartered Accountant) (211 Points)
Replied 26 February 2010

Yes import duty on Gold has gone up. So it will be more expensive.

priyank (Investment banker) (59 Points)
Replied 26 February 2010

FM prunes tax rates:
Income up to Rs 1.6 lakh - nil Income above Rs 1.6 lakh and up to Rs 5 lakh - 10 per cent
Income above Rs 5 lakh and up to Rs 8 lakh - 20 per cent
Income above Rs 8 lakh - 30 per cent.
Income Tax department ready with two-page Saral-2 return forms for individual salaried assesses.
New tax rates would offer relief to 60 per cent of tax-payers.
Government's net borrowing to be Rs 3,45,010 crore for 2010-11.
Additional deduction of Rs 20,000 allowed on long term infrastructure bonds for income tax payers; this is above Rs one lakh on saving instruments allowed already.
A unique identity symbol would be provided to the Indian Rupee in line with US Dollar, British Pound Sterling, Euro and Japanese Yen.
Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011-12 and 2012-13 respectively.
Total expenditure pegged at Rs 11.8 lakh crore, an increase of 8.6 per cent.
Gross tax receipts pegged at Rs 7,46,656 crore for 2010-11, non-tax revenues at Rs 1,48,118 crore.
FM appeals to "misguided elements" (left wing extremists) to eschew violence and join the mainstream.
Planning Commission to prepare integrated action plan for Naxal-affected areas.
Defence allocation pegged at Rs 1,47,344 crore in 2010-11 against Rs 1,41,703 crore in the previous year. Of this, capital expenditure would account for Rs 60,000 crore.
Fiscal deficit pegged at 6.9 per cent in 2009-10 as against 7.8 per cent in the previous fiscal.
Finance Minister to continue giving cash subsidy for fuel and fertiliser instead of previous practice of bonds.
Non-plan expenditure pegged at Rs 37,392 crore and Plan expenditure at Rs 7,35,657 crore in budget estimates. 15 per cent increase in plan expenditure and six per cent in non-plan expenditure.

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 26 February 2010

FM prunes tax rates:
Income up to Rs 1.6 lakh - nil Income above Rs 1.6 lakh and up to Rs 5 lakh - 10 per cent
Income above Rs 5 lakh and up to Rs 8 lakh - 20 per cent
Income above Rs 8 lakh - 30 per cent.
Income Tax department ready with two-page Saral-2 return forms for individual salaried assesses.
New tax rates would offer relief to 60 per cent of tax-payers.
Government's net borrowing to be Rs 3,45,010 crore for 2010-11.
Additional deduction of Rs 20,000 allowed on long term infrastructure bonds for income tax payers; this is above Rs one lakh on saving instruments allowed already.
A unique identity symbol would be provided to the Indian Rupee in line with US Dollar, British Pound Sterling, Euro and Japanese Yen.
Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011-12 and 2012-13 respectively.
Total expenditure pegged at Rs 11.8 lakh crore, an increase of 8.6 per cent.
Gross tax receipts pegged at Rs 7,46,656 crore for 2010-11, non-tax revenues at Rs 1,48,118 crore.
FM appeals to "misguided elements" (left wing extremists) to eschew violence and join the mainstream.
Planning Commission to prepare integrated action plan for Naxal-affected areas.
Defence allocation pegged at Rs 1,47,344 crore in 2010-11 against Rs 1,41,703 crore in the previous year. Of this, capital expenditure would account for Rs 60,000 crore.
Fiscal deficit pegged at 6.9 per cent in 2009-10 as against 7.8 per cent in the previous fiscal.
Finance Minister to continue giving cash subsidy for fuel and fertiliser instead of previous practice of bonds.
Non-plan expenditure pegged at Rs 37,392 crore and Plan expenditure at Rs 7,35,657 crore in budget estimates. 15 per cent increase in plan expenditure and six per cent in non-plan expenditure.