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Hello,

It has been my every year ritual - since more than 7 years now - to send you the Synopsis of Union Budget; as soon as declared by our FM.

So this year too, I carry on with this ritual, unabated.

Please find below the "Synopsis of the Union Budget 2010-2011" presented by our H'ble Finance Minister Pranab Mukherjee in the Parliament today, the 26th February of 2010.

Additionally, please find attached the Key Features of Budget 2010-2011.
Finance Bill, Budget Speech are available on www.indiabudget.nic.in

Thanks & Regards,
- Anand Wadadekar
M.A Economics, MBA Finance, AMFI, DIT, GCIPR
Information Expert
Pune, Maharashtra
http://in.linkedin.com/in/anandwadadekar

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




Category Income Tax, Other Articles by - Dr. Anand Wadadekar 



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