Synopsis of the Union Budget 2010-2011

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

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