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Saturday, February 27, 2010

[sharetrading] Union Budget 2010-2011

 





UNION BUDGET 2010-2011


INCOME TAX

 

Individual  

Existing

Proposed

From Rs.1,60,001 to Rs 3,00,000 -10%

From Rs.1,60,001 to Rs 5,00,000 -10%

From Rs.3,00,001 to Rs 5,00,000 -20%

From Rs.5,00,001 to Rs 8,00,000 -20%

Above Rs.5,00,000 -30%

Above Rs.8,00,000 -30%

  • Additional investment of Rs 20,000 in infra bonds over and above Rs 1 lakh in 80C.
  • Enhance tax audit limits for professionals to Rs 15 lakh

Corporate     

  • Reduces current surcharge of 10% on domestic comp to 7.5%
  • Peak excise duty hiked from 8% to 10%
  • Weighted deduction from 150% to 200% for in-house R&D
  • Limits for turnover for purpose of presumptive taxation of small business enhanced to Rs 60 Lakhs

TAX - OTHERS

 

Goods and Service Tax (GST) and Direct Tax Code (DTC)  

  • Implementation of GST and DTC by April 2011

MAT Negative  

  • Minimum Alternate Tax up from 15% to 18% on book profits

AGRICULTURE P

  • Will reduce fertilizer subsidy
  • Focus to improve food security
  • To provide Rs 400 cr to extend green revolution to eastern India
  • Sets aside Rs 200 cr for a new agricultural initiative
  • Repayment tenure for farmer loans extended by 6 months to June 30th 2011
  • To provide 2% loan subsidy to farmers
  • Proposes to increase subvention to 5% in repayment of farmer loans
  • Allocates Rs 1,200 cr for drought mitigation
  • Agri credit flow target for this year increased to Rs 3,75,000 cr from Rs 3,25,000 cr last year
  • To set up 5 more mega food park projects
  • Rs 300 cr for Rashtriya Krishi Yojna
  • Rs 100 cr allocated for women farmers
  • External commercial borrowing will be available for food storage industries

EDUCATION

  • Govt allocates Rs 31,036 cr for school education and Rs 3,675 cr for elementary education

INDUSTRIES Automobile and Ancillaries

  • Excise duty on large cars, SUVs, multi utility vehicles raised to 22% from 20%
  • Full excise cut on electric cars

Banking & Financial Companies

  • Sets aside Rs 16,500 cr for PSU banks to get minimum 8% tier 1 capital by March 2011
  • 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
  • Agri credit flow target for this year increased to Rs 3,75,000 cr from Rs 3,25,000 cr last year
  • To provide 2% loan subsidy to farmers
  • Proposes to increase subvention to 5% in repayment of farmer loans
  • IIFCL disbursements at Rs 9,000 cr by March 2010
  • Housing loan: 1% interest subvention scheme extended, allocation Rs 700 cr
  • Allocates Rs 100 cr for new pension scheme, to benefit 100,000 low income citizens
  • All villages with 2000+ population to get banking facilities by 2012 

Cement

  • Partial rollback of excise duty on cement

Infrastructure & Engineering

  • 44% of total plan outlay allocated to infrastructure
  • Budget allocates Rs 1.73 lakh cr for infrastructure
  • IIFCL disbursements at Rs 9,000 cr by March 2010
  • Delhi-Mumbai industrial corridor taken up for development
  • Road transportation kitty increased 13% to Rs 19,894 cr
  • Govt allocates Rs 16,500 cr for railways
  • Rs 66,1000 cr allocated for rural development in FY11
  • 35% of development funds to be invested in rural India
  • Urban development allocation up more than 75% to Rs 5,400 cr
  • Rs 100 cr for financial inclusion fund; Allocation for Bharat Nirman at Rs 48,000 cr
  • Additional Rs 20,000 deduction available for investment in infra bonds
  • Government committed to SEZs to promote exports
  • No import duty on some equipment in road projects

 

Fertilizer 

  • To provide govt subsidy in cash instead of bonds for fertilizer
  • Will reduce fertilizer subsidy
  • Rs 300 cr for Rashtriya Krishi Yojna

FMCG

  • To set up 5 more mega food park projects
  • External commercial borrowing will be available for food storage industries
  • 35% of development funds to be invested in rural India
  • Rs 66,100 cr allocated for rural development in FY11
  • Duties on smoking and non-smoking tobacco products up

Gems & Jewellery   

  • Import duty on silver raised to Rs 1,500 per kg

Healthcare   

  • Focus to improve healthcare systems
  • Govt allocates Rs 22,300 cr to healthcare
  • Weighted deduction from 150% to 200% for in-house R&D

IT/ITES Neutral  

  • UID authority given Rs 1,900 cr
  • Government committed to SEZs to promote exports

Oil & Gas Positive  

  • To discuss Kirit Parikh report in due course
  • Petroleum products: basic duty of 5% crude , 7.5% on diesel & petrol; 10% on refined products
  • Rs 1 per litre excise on petrol, diesel
  • To provide govt subsidy in cash instead of bonds for oil

Power

  • Govt to facilitate 20,000 MW of solar power by 2022
  • Govt to have a coal regulator for allocation of coal blocks
  • To levy clean energy cess on imported coal
  • Funds for power allocation raised from Rs 2,232 cr to Rs 5,132 cr
  • Propose to hike allotment for renewable energy by 61%
  • For solar mission, solar power generating units rates are to be reduced by 5%
  • Cut in duty for photovoltaic units

PSU Positive  

  • Divestment proceeds budgeted higher in FY11 vs FY10
  • Govt to raise Rs 25,000 cr through disinvestment

Real Estate

  • Indira Awas Yojana: allocation up by Rs 10,000 cr
  • Sops for real estate, housing projects extended by a year
  • Housing loan: 1% interest subvention scheme extended to March 2011, allocation Rs 700 cr
  • Delhi-Mumbai industrial corridor taken up for development

Telecommunication Neutral  

  • Allocation for Bharat Nirman at Rs 48,000 cr
  • Mobile accessories market to get tax breaks

Textile  

  • FM extends interest subvention of 2% for exports of handlooms, handicrafts and SMEs for 1 year
  • Exclusive skill development programme in textile and garment sector
  • Khadi institutes get Rs 400 cr
  • GOI sign USD 150 mn deal with ADB for implementing Khadi programme
  • One time grant of Rs 200 cr to Tamil Nadu for textiles
  • Government committed to SEZs to promote exports

Tourism

  • To boost tourism investment, offers investment linked tax deductions
  • Rs 200 cr for Goa to restore beaches

 



--
With Regards,
Kushagra Mehta
http://www.daytrading.in



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