The indian Tax budget is out for 2010

Key Features of Budget 2010-11

GENERAL:

• Economic crisis: “We have withered the global slowdown well,” says FM.
• 18.9% growth rate in manufacturing sector in 2009.
• Fiscal deficit pegged at 5.5%
• Hope to breach 10% mark in GDP in near future, says FM.
• Growth to exceed 7.2% in this fiscal, says FM.
• General Sales Tax and Direct Tax Code can be introduced in April 2011
• Gradual phasing out of stimulus, says FM.
• Govt to set up apex level Financial Stability and Development Council
• RBI to release additional licenses to pvt sector banks and non-banking financial institutions
• Repayment tenure for farmer loans extended by 6 months to June 30th 2011
• Delhi-Mumbai industrial corridor taken up for development
• Govt to raise Rs 25000 cr through Disinvestment
• Technology advisory group to be set up under Nandan Nilekani. UID authority given Rs 1900 cr
• Allocation to Defence over Rs 147,000 crore

PRANAB MUKERJEE ( INDIAN FINANCE MINISTERS BUDGET 2010 )

DIRECT TAX:

• Direct tax code will be implemented from April 1, 2011
• I-T dept to notify simple two-page Saral 2 form for individuals for current year
• Direct Tax proposals to give loss of Rs 26,000 cr; Indirect Tax to yield gain of Rs 45,000 cr

• No change in Corporate Tax
• Minimum Alternate Tax up from 15% to 18% on book profits
• Reduced Surcharge of 10% on domestic companies to 7.5%
• Professionals with Rs 15 lakh income need accounts audit

Personal Taxation:

• Income up to Rs 1.60 lakh: NIL tax
• Income between Rs 1.60-5 lakh: Tax at 10%
• Income between 5-8 lakh: Tax at 20%
• Income above Rs 8 lakh: Tax at 30%
• Minimum Tax Exemption limit for Senior Citizens and Women remains unchanged; i.e. Rs. 2,40,000 and Rs. 1,90,000 respectively.
• Additional Rs 20,000 deduction made available for investment in Infrastructure Bonds. This is above Rs. 1,00,000 80C exemption

INDIRECT TAX:

• Service Tax rates unchanged at 10%, to bring more services under service tax
• Duties on smoking and non-smoking tobacco products up
• Peak excise duty hiked from 8% to 10%
• Peak customs duty remains unchanged at 10%
• Rs 1 per litre excise on petrol, diesel
• Full excise cut on electric cars
• Partial rollback of excise duty on cement
• Agricultural seeds exempt from Service Tax
• News agencies exempt from Service Tax
• Service tax to GDP ratio is 1%
• Customs duty on gold, platinum imports raised to Rs 300 from Rs 200
• Import duty on silver raised to Rs 1500 per kg