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 )

u_pranab_mukherjee

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