India Union Budget 2010-2011
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Budget Tax Proposal
In an attempt to quickly slip back to the high GDP expansion route of 9% and locate effective measures to supersede the 'double digit growth barrier', the Finance Minister of India Pranab Mukherjee proposed few initiative to assist the economic expansion while presenting the India Union Budget 2010-2011 in the parliament on February 26, 2010.
The Finance Minister of India began his speech on an impressive note by highlighting the economic growth in various sectors and recommendation of new initiatives for future financial years. Below is the list of the proposals announced by the FM while delivering his budget speech in the parliament -
India Union Budget 2010-2011 General Proposals and Announcements
- Fiscal deficit for the FY 2011 is estimated at 5.5%
- 18.9% growth rate registered by manufacturing industry in 2009
- Indian Economy is expected to register a 10% GDP growth in the coming years
- A 7.2% economic growth is estimated to be registered in the current fiscal
- The future years are expected to witness gradual segmentation of incentives
- Direct Tax Code and General Sales Tax to be launched in April 2011
- A supreme level Fiscal Stability and Development Council to be established by the central government
- Issue of additional banking licenses by the Reserve Bank of India to private players and non-banking financial organizations
- 6 months extension of the refund term for farmer loans up to June 30th 2011
- Undertaking of the introductory development activities for Delhi-Mumbai industrial corridor
- ` 25000 crores increase by the government via Disinvestment route
- Setting up of Technology advisory group under the governance of Nandan Nilekani
- Allocation of ` 1900 crore for UID authority
- Allocation of ` 147,000 crore for Defence
- Implementation of Direct tax code from April 1, 2011
- Introduction of a simplified 2 page Saral 2 form by Indian Income Tax department for FY 2010-11
- Loss of ` 26,000 cr from the initiation of Direct Tax plans and profits of ` 45,000 from the implementation of Indirect Tax proposals
- Corporate Tax to continue at the same rate
- 3% increase in Minimum Alternate Tax from the previous 15% to 18% on book gains
- Reduction of 10% additional tax on domestic firms to 7.5%
- Demand for account assessment of professionals with more than ` 15 lakh of earnings
- Service Tax rates to remain constant at 10% in an attempt to include more services under the tax code
- Increase in the tariff on smoking and non-smoking tobacco commodities
- 2% increase in Central Excise tariff from the previous 8% to the proposed 10%
- Total excise tax exemption on electric cars
- Central Customs tariff to remain constant at 10%
- Excise tariff of ` 1 per litre on diesel and petrol
- Service Tax exemption on News agencies
- Limited reduction in the excise tariff on cement
- Service Tax exemption on farming seeds
- Hike in the customs tariff on gold and platinum exports from the previous ` 200 to the proposed ` 300
- Hike in Import tax on silver metal to ` 1500 on every kg
- Individuals earning upto ` 1.60 lakh will not be levied under Income Tax laws.
- Individuals earning from ` 5 lakh to ` 8 lakhs will be charged at 10%
- Individuals earning above ` 8 lakh will be taxed at 30%
- Tax exemption limit remains constant for Women and Senior Citizens at ` 1, 90,000 and ` 2, 40,000 respectively.
- Additional deduction of ` 20,000 will be accessible for making investment in Infrastructure Bonds.
Last updated on : 15-05-2011
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