BUDGET PROPOSALS- DIRECT AND INDIRECT TAXES PROPOSALS

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central sales tax.pdf

customes.pdf

excise.pdf

income tax proposed amendments.pdf

notes on clauses.pdf

service tax.pdf

wealth tax amendments.pdf

Budget Highlights-2010

Budget Highlights 2010 GST to be implemented from 2011 Hope to implement Direct Tax Code from April 2011 Online news agencies to attract service tax Service Tax rates unchanged Account auditing for all income above Rs 15 lacs More services to be brought under tax net Rationalization of customs duty on gaming software Toys exempted from excise duty, to become cheaper Jewellery to be more expensive Monorail granted project import status CDs to be cheaper Excise duty on CFL halved to 4% Customs duty on Gold and Platinum hiked Refrigerators to be costlier Televisions to be costlier Mobile phones to become cheaper Peak customs duty unchanged at 10% Cement to be costlier Air conditioners to be costlier Excise on all non smoking tobacco raised 7.5% duty on petrol and diesel restored 5% duty on crude petroleum restored Excise duty on petrol and diesel raised to Rs 1/liter Cigarettes to be costlier Excise on large cars, SUVs, MUV raised to 22% Partial rollback in Excise Duty from 10% to 8% Presumptive tax limit raised to Rs 60 lacs Investment linked deduction benefit for 2 Star hotels Deduction of Rs 20000 on investment in infra bonds Weighted deduction on R&D raised to 200% from 150% No tax on Income up to Rs 1.6 lacs Current surcharge on companies reduced to 7.5% Minimum Alternate tax hiked to 18% 30% tax on income above Rs 8 lacs 20% tax on income between Rs 5 lacs to 8 lacs 10% tax on income between Rs 1.6 lacs to 5 lacs IT dept to notify Saral 2 form for individual tax payers Home loans up to Rs 20 lacs to get interest subvention of 1% up to March 11 Interest  subvention for housing loans up to 1 lacs 2% loan subsidy to farmers Farm loan payments to be extended for six months Interest subvention of 2% to be extended for handicrafts and SMEs interest subvention for exports to extended for one year RBI may give banking licenses to Pvt cos and NBFCs FDI policy to be made more user-friendly

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