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Union Budget 2010-2011

February 27, 2010 by

INCOME TAX

Individual

• 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

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

AGRICULTURE

• 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

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

Oil & Gas

• 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

• 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

• 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