Union Budget 2010-2011: Synopsis

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