BUDGET 2010 Highlights

Budget Special Highlights - 2010-2011

Highlights

• Service tax to result in net revenue gain of Rs 3000 cr
• Customs duty on silver at Rs 1500/kg
• Custom duty on gold to be reduced
• Mobile phones to be cheaper
• No capital gains tax on conversion of a business entity into Limited Liability Partnership
• To encourage manufacture of accessories such as battery chargers and hands-free sets, the concessions will be extended the mobile phone sector
• 5% customs duty on crude petroleum back
• Peak customs duty unchanged at 10%
• FM raises central excise duty on all non-petroleum products from 8 to 10 per cent
• Revenue loss of Rs 26,000 crore on direct tax proposals
• Stimulus-led excise duty rollback partially reversed
• FM allows housing projects to complete projects in 5 years instead of 4 years to avail tax break
• One-time interim relief to housing and real estate sector
• Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations of their accounts
• Uproar in Parliament over petrol price rise
• To levy excise duty of Re 1/litre on petrol
• New tax rates would offer relief to 60 per cent of tax-payers
• CET on petroproducts hiked by Re 1
• Direct tax receipts to fall by Rs 56,000 cr
• Standard excise rate up from 8 to 10%
• Large cars, SUVs excise up to 22% from 20%
• Sops for real estate, housing projects extended by a year
• Partial roll back the rate reduction in central excise
• Direct tax scheme to result in revenue loss of Rs 26,000 cr
• Compliance burden reduced on professionals and entrepreneurs
• Corporate tax surcharge down from 10 to 7.5%
• New income tax slabs will bring relief to the middle class
• Rs 20,000 additional tax break for infra bonds
• Minimum Alternate Tax hiked to 18%
• R&D allocation increased 200%
• To unveil new Saral 2 form for salaried individuals in two pages
• Deduction of additional 10% for investment on infrastructure bonds
• Tax slabs: Broadening 1.6 lakh - Nil above 1.6 lakh-up to 5 lakh 10%
• 5-8 lakh- 20% above 8 lakh- 30%
• Tax paying interface to be de-cluttered
• States to be offered assistance to computerise commercial taxes
• Greater transparency in tax administration targeted
• Centralized Tax Centre at Bengaluru fully functional
• Fiscal deficit at 5.5% for FY'11
• Rolling target for fiscal deficit 4.2%
• Gross tax receipts at Rs 7.46 lakh cr
• New symbol for Indian Rupee
• Tech advisor group under Nandan Nilekani
• Allocation for development of micro and small scale sector raised from Rs 1,794 cr to Rs 2,400 cr
• Rs 2,600 cr for Minority Affairs Ministry
• To create 50 cr skilled workers by 2022
• Rs 1,900 cr to UID authority allocated
• First set of UID to be issued by this year
• Rs 19,484 cr allocated for road development, to build 20 km of highway every day
• Subsidy for affordable housing extended
• Skill development programme for textile and garment sector
• Pvt sector to meet deficit in grain storage
• 50% increase in women & child development allocation
• Development of rural infra remains high priority area
• Power sector allocation doubled to Rs 5130 cr
• Rs 400 cr corpus for micro-finance scheme
• National pension scheme allocation increased
• States to get Rs 3,675 crore for primary education at rural level
• Rs 400 cr corpus for micro-finance scheme
• NREGA allocation to Rs 40,100 crore
• National Social Security fund to be set up for unorganized sector
• Urban Development allocation to be raised by 75 per cent
• 20,000 mw of solar power by 2022
• Rural development allocation to Rs 61,000 cr
• Indira Awaas Yojana allocation raised in proportion to plain and hill area housing
• Development of rural infra remains high priority area
• Social sector spending at Rs 1.38 lakh cr for FY11
• Rs 500 cr for Clean Ganga Mission
• Rs 66, 100 cr for rural development in FY10-11
• Allocation for school education up from Rs 26, 800 crore to Rs 31, 036 cr
• Rs 22, 300 crore allocated for Health Ministry
• Coal regulatory authority proposed
• Rs 300 cr for Rashtriya Krishi Vikas Yojana
• Bank farm loan target: Rs 3.75 lakh crore
• Rs 200 cr To Tamil Nadu for textiles
• Need to take firm view on opening up of the retail sector
• National clean Energy Fund to be set up
• Rs 200 crore to Goa as a special golden jubilee package to restore beaches and increase green cover
• To provide 2% loan subsidy to farmers
• Extend loan payment by calamity hit farmers
• Rs 400cr for four-part strategy for agriculture
• 2% interest subvention for exports extended
• Additional banking licenses for pvt players
• 4 pronged strategy for agriculture
• Rs 16,500 cr capital support for PSU banks
• Will consider Parikh report on fuel pricing
• Goods and services tax to be introduced in 2011
• Fertiliser subsidy to be reduced
• GDP growth for FY'10 is seen at 7.2 pc
• Rs 25,000 cr disinvestment target this year
• India weathered economic crisis well
• Direct tax code to be implemented from April 1, 2011
• Gradual phasing out of economic stimulus
• Pvt investment can sustain 9 pc growth
• First challenge: Return to GDP growth
• Manufacturing growth highest in the past 2 years
• Indian economy is in a far better position today
• FM is expected to simplify tax laws in 2010
• Biggest challenge is to make the growth all inclusive
• Need to strengthen food security
• Pranab: Indian economy has stood through the test of time
• Economic growth slows down to 6 pc in Q3
• Finance Minister presents Budget 2010
• Pranab Mukherjee presents his 5th Union Budget
• Finance Minister Pranab Mukherjee reaches Parliament
• Inflation is forecast to reach 10 percent in coming weeks
• Government borrowing was forecast to rise by another 2.2 percent
• Economists forecast India may cut its fiscal deposit to 5.6% of GDP

Taxes

• More services to be brought under service tax net
• Service tax to result in net revenue gain of Rs 3000cr
• Customs duty on gold to be reduced; silver at Rs 1500/kg
• Uniform concessional duty of 5% on all medical appliances
• Rationalising of customs on gaming software
• Custom duty of one of the key component of microwave oven reduced
• Peak customs duty unchanged at 10%
• Custom duty for importing of duplication of prints of films revised
• No capital gains tax on conversion of a business entity into Limited Liability Partnership
• Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations
• Nominal duty of 4% electric cars
• Partial rollback of excise duty on cement, cement products, large cars
• To levy excise duty of Re 1/litre on petrol
• R&D Corp Tax break up to 200%
• Direct tax receipts to fall by Rs 56,000 cr
• Pilot project for tax grievances extended to 4 cities
• Direct tax scheme to result in revenue loss of Rs 26,000cr
• Corporate tax surcharge down from 10 to 7.5%
• Rs 20,000 additional tax break for infra bonds
• Corp Min Alternate Tax up from 15 to 18%
• New tax rates would offer relief to 60 per cent of tax-payers
• Direct tax slabs: income upto 1.6 lakh = nil, 1.6-5 lakh = 10%, 5-8 lakh = 20%, above 8 lakh = 30%
• Centralized Tax Centre at Bengaluru fully functional
• Gross tax receipts Rs 7.46 lakh crore
• Deferment of goods & service tax negative for corporates in FY10-11
• Direct tax to be implemented from April 1, 2011
• Simple tax system with minimum exemptions near completion
• Indirect taxes will continue to be in focus
• Excise duty, service tax may go up by 2%

Prices

• More services to be brought under service tax net
• Service tax to result in net revenue gain of Rs 3000cr
• Customs duty on gold to be reduced; silver at Rs 1500/kg
• Uniform concessional duty of 5% on all medical appliances
• Rationalising of customs on gaming software
• Custom duty of one of the key component of microwave oven reduced
• Peak customs duty unchanged at 10%
• Custom duty for importing of duplication of prints of films revised
• No capital gains tax on conversion of a business entity into Limited Liability Partnership
• Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations
• Nominal duty of 4% electric cars
• Partial rollback of excise duty on cement, cement products, large cars
• To levy excise duty of Re 1/litre on petrol
• R&D Corp Tax break up to 200%
• Direct tax receipts to fall by Rs 56,000 cr
• Pilot project for tax grievances extended to 4 cities
• Direct tax scheme to result in revenue loss of Rs 26,000cr
• Corporate tax surcharge down from 10 to 7.5%
• Rs 20,000 additional tax break for infra bonds
• Corp Min Alternate Tax up from 15 to 18%
• New tax rates would offer relief to 60 per cent of tax-payers
• Direct tax slabs: income upto 1.6 lakh = nil, 1.6-5 lakh = 10%, 5-8 lakh = 20%,
• above 8 lakh = 30%
• Centralized Tax Centre at Bengaluru fully functional
• Gross tax receipts Rs 7.46 lakh crore
• Deferment of goods & service tax negative for corporates in FY10-11
• Direct tax to be implemented from April 1, 2011
• Simple tax system with minimum exemptions near completion
• Indirect taxes will continue to be in focus
• Excise duty, service tax may go up by 2%

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