Discuss budget 2009 and its implications here!!
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Discuss Budget 2009 and its implication!!
Replies (31)
THEY WILL INCREASE SLAB RATE 30K, HOPE REMOVE SURCHARGE AND FBT...INTRODUCE STANDARAD DEDUCTION AGAIN....
yeah and dont forget increase in Excise and Service tax.
Dear Admin,
I think in general, the threshold limit for taxable income will be increased and the service tax rate will be brought to 12.36% as it was prior to 24-Feb-09.
Budget 2009-10 Highlights:
· Maintaining overall excise, customs and service tax
· Custom duty on set-top boxes is now 5%
· Tax holiday extended for commercial production of natural gas
· Political funding will get 100% tax deduction
· CTT abolished
· National Pension Scheme exempted from STT
· MAT reduced to 15% of book profits, MAT tax credit increased from 7 years to 10 years
· 4% excise duty on cotton restored
8% excise duty on man-made fibers brought back Maintaining overall excise, customs and service tax reduced
FBT CDT scrapped, Surcharge scrapped and MAT increased to 15% , tax exemption for woman increased by 10000 for senior citizen by 15000 and for others 10000
no change in corporate taxation except presumtive taxation of 8% and no need to pay advance tax.
Highlights
Budget speech completed. Finance Bill-II 2009 introduced. Customs duty on bio-diesel reduced. Silver to cost more. Tax to be levied on Law Firms. Textile units to receive tax holiday. LCD TVs to cost less. Custom duty on LCD TVs cut from 10% to 5%. Set-Top Boxes to cost more. Customs duty of 5% on set-top boxes. To extend tax holiday for commercial production of mineral oil and natural gas. Enhance budgetary support by Rs 40,000 cr. Fringe Benefit Tax abolished. Commodity Transaction Tax abolished. Personal income tax exemption hiked by Rs 10,000. No surcharge of 10% on personal income tax. Centralised processing center at Bengalooru to streamline taxation. No change in corporate tax. Increase in exemption slab for senior citizens by Rs 15,000. Fiscal deficit at 6.8% of GDP. Proposes Rs 500 cr for rehabilation of displaced persons of northern and eastern areas of Sri Lanka. Aila Relief proposed at Rs 1,000 crore. Increased allocation for higher education. New IITs to be set up. Rs 2,113 cr for IITs and NITs. Rs 25 cr each for AMU campuses in Murshidabad and Mallapuram. Defence outlay goes up. One lakh dwelling units for paramilitary forces personnel to be constructed. Allowances to para-military forces at par with defence forces. One rank, one pension for ex-servicemen. Allocation for Commonwealth Games to be raised to Rs 3472 crore Online job exchange to be started with private partnership. Unique ID plan to roll out in 12-18 months. Top people from private sector to be given responsibility of vital national projects. Interest subsidy for home loans up to Rs 1 lakh. All BPL families to be bought under one smart card program. 50% of all rural women to be brought into self-help group programmes. Rural mega clusters in Bengal and Rajasthan. To add handloom clusters in West Bengal and Tamil Nadu. 75% hike in irrigation projects. Rural Housing: Allocation to Indira Awaas Yojna hiked by 63% to Rs 8,883 cr. Rs 7000 crores for rural electrification scheme. Rs 31,100 crore allocation for NREGA. NREGA gave employment opportunities to more than 4.479 cr households. Rs 100 cr one-time grant to expand banks in non-banking areas. Banks, insurance to stay with Govt. Banking network to be expanded. Expert panel to look into petroleum product pricing. Domestic oil prices must be in sync with global prices. 'Aam Admi' is the focus of all our programmes and schemes: Pranab Tax system should be such that it shold encourage voluntary compliance. Income Tax forms to be made user-friendly. Saral-II forms to simplify taxation process. Export Credit Guarantee scheme extended till March 2010. Stimulus package to print media extended till December 31. Farmers loan interest to come down to 6%. Interest subvention scheme for farm loans to be manitained. Additional budget allocation for farmers. IIFCL will refinance 60% of commercial bank loans in PPP. IIFCL to look at infrastructure needs. Mumbai flood management allocation hiked to Rs 500 cr. 87% rise in urban renewal mission. Housing allocation hiked. Fiscal stimulus at 3.5% of GDP Allocation for NHAI up 23% Trade in goods and services doubled in 2008 Job creation hit due to economic slowdown: Pranab Govt took 3 stimulus packages so far. Two worst quarters of the global economic crisis is now behind us: Pranab One budget can not solve all problems: Pranab Foreign capital inflow is important Increased focus on growth and encourage nation's development Sustain growth rate of 9% for a longer period. Farm sector growth at 4% Union Finance Minsiter begins his speech. This is Pranab Mukherjee's 4th budget. Cabinet approves Union Budget.
Taxes
Service tax levied on law firm Custom duty on gold re-imposed Customs duty to be reduced on drugs for heart treatment No new tax on edible oil imports 4 per cent excise duty on cotton products restored Customs duty on bio-diesel reduced Life saving devices on heart contidion exempted from custom duty Small business exempt from advance tax To maintain overall customs and excise duty structure Tax holiday to natural gas extended Tax slab raised MAT hiked to 15 per cent of book profit Commodity transaction tax abolished New pension scheme Tax holiday for exporters extended untill 2012 Personal income tax exemption hiked by Rs 10,000 Abolish fringe benefit tax Tax holiday extended for textile units Goods and services tax from April 1, 2010 Share of direct taxes has increased to 56 per cent in 2008-09 Federal Tax/GDP ratio is 11.5 per cent No surcharge of 10 per cent on personal income tax Increase in exemption slab for senior citizen No change in corporate taxes Hike in IT exemption for women to Rs 1,90,000 Govt committed to tax reforms Increase automation in direct tax collection New tax code in 45 days Centralised processing center at Bengalooru to streamline taxation Income tax forms should be user friendly Tax system should be such that it shold encourage voluntary compliance Saral form 2 will be introduced
Markets
Markets in the red. Sens*x down more than 600 pts Nifty down more than 200 pts Mid-cap, Small-cap stocks down
Prices
Branded jewellery to become cheaper Mobile phone accessories to get cheaper Set-top box to cost more Silver to cost more Reduce custom duty on LCD TVs cut from 10 per cent to 5 per cent Customs duty of 5 per cent on set top boxes
| Originally posted by :Þräßéêr | ||
| " | Dear Admin, I think in general, the threshold limit for taxable income will be increased and the service tax rate will be brought to 12.36% as it was prior to 24-Feb-09. |
" |
This Budget is Ok but not as per public expectation.
Pls udate about Transport of Goods through road.
it is exempted
Regards
Dilip Kadam
But for FBT budget is not that much attractive for both Corporates and Individuals. The expectations were more from the finance ministry however the outcome of the budget will not satisfy the Corporates and Individuals on the whole.
The Budget seems to be ok for individual but not for Companies
The Major higlights seems to
Tax slab increased to 1.60 lacs For men & 1.9 Lacsfor women 2.4lacs senior citizen
FBT ablolished
Rate of TDS U/s 194C & 194I reduced
Pan Compulsion otherwise Tds @ 20%
CTT abolished
MAT @ 15%
44 AD amended to include Presumtive taxation for all businessman @ 8% if turnover below 40Lacs
Adavnce Tax only if it is above 10K
Remuneration slab For partner increased upto 3 lacs
Setion 56 ameded to include transaction for non considederation or without consideration
Service tax to include Lawyer except receipient/provider is individual
Service tax to exclude Sub Broker from ser tax net
Overall some changes which are good
The budget should have granted the relief for Housing Loan upto 3 lacs & needed to increase 80C limit to 1.5 lacs
ITS A TAXPAYER'S BUDGET...
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