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
