UNION BUDGET HIGHLIGHTS 10-11 - MUST WATCH

Page no : 7

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

prateek does it means that if tds is deducted in jan ,can be paid till due date of filing of return.so if it not paid before 7 th of next month it will be allowed as expenses if it is paid before due date of filing the return

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(Guest)

The tax rates that are changed, it says only broadly without making distinction between women , senior citizens.... what applies to them?

AnandKumar (Manager-Cost Planing Team) (61 Points)
Replied 26 February 2010

MAT Rate increased from 15% to 18%

Excise Duty increased from 8% to 10%

Corporate Tax surcharge reduced from 10% to 7.5%

(Guest)

Will this tax rates change effect DTC to be implemented in april11 as the rates in DTC are quite differnt as mentioned in Bill....???

(Guest)

The tax rates that are changed, it says only broadly without making distinction between women , senior citizens.... what applies to them(senior citizen, women)?????

Will this tax rates change effect DTC to be implemented in april11 as the rates in DTC are quite differnt as mentioned in Bill....???

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Milan Somani (CA) (1456 Points)
Replied 26 February 2010

Originally posted by : Faiz
	The tax rates that are changed, it says only broadly without making distinction between women , senior citizens.... what applies to them(senior citizen, women)????? Will this tax rates change effect DTC to be implemented in april11 as the rates in DTC are quite differnt as mentioned in Bill....???

Minimum Tax Exemption limit for Senior Citizens and Women remains unchanged; i.e. Rs. 2,40,000 and Rs. 1,90,000 respectively.

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

Faiz...

What has gone wrong brother??

The minimum limit remains the same:

Women - 190000

Senior Citizens - 240000

Others - 160000

Thats it, they are the exmption limits any income above them to the Rs 5 lacs is taxed at 10 % and so on

(Guest)

Kindly answer my second question also????

(Guest)

Dhiraj,

Aisha has given right tax slab

CA and CS Pradeep K Jain (service) (31 Points)
Replied 26 February 2010

NEW DELHI: This budget not too tight, neither too loose. The ways in which he has cut the deficit down to 5.5% of GDP is expenditure compression, especially non-plan expenditure with only a 6% increase(adjusted for inflation) is hardly anything. So, there is more emphasis on the spending side rather than on the tax side. The net result, the fiscal deficit has got down to 5.5% of GDP and what is more it's a transparent one.

He says this includes no extra oil bonds and he is aiming at bringing the fiscal deficit down over the next two years to 4.8-4.1. I think this idea that he is on a responsible fiscal policy path has greatly enthused foreign investors. I think that is the main reason why you saw the stock market shoot up after its all these regular proposals.

On financial sector reform there was idea that something could happen or a question whether he will increase the insurance FDI limit to 49%, he said nothing. There has been talk about trying to reduce the public sector share in PSU banks- nothing; increase in the voting share of foreigner investors in banks - nothing, there was a proposal that service tax should be extended to the railways. He said he is showing some memorandum on that but I doubt very much whether railways will be on that otherwise he would have mentioned it.

He has avoided giving any specific sums of money for spending on implementing the Right to Education Act or Food Security Act. He just said we will pull it up for discussion and instead of doing something about the woeful lack of justice and financial sector reform there are new commissions to go into financial sector reform and judicial reform. So, there are various areas he could have done much more and he has not done much more so it's a middle of the road budget. My marks would be 6 out of 10.