| Cheaper | Costlier |
| Gaming softwares | Jewelery |
| Toys | Gold and Platinum |
| CDs | Refrigerators |
| CFLs | Televisions |
| Mobile Phones | Cement |
| Air Conditioners | |
| Cigarettes | |
| SUVs | |
| Fuel |
Fuel prices likely to go up
The fuel prices are likely to go up very soon. Finance minister Pranab Mukherjee announced in the parliament today that excise duty on petrol and diesel will be raised to Rs 1/litre.
He also announced to restore 5% duty on crude petroleum and 7.5% duty on petrol and diesel.
With this announcement there was an uproar in the paliament and the oppostion walkout in Lok Sabha
Income Tax Slabs Relaxations and Slab Restructured
The finance minister of India Mr. Pranab Mukherjee announced the restructuring of Income tax slabs while presenting the budget for 2010-11. The new slabs include 30% tax on income above Rs 8 lacs , 20% tax on income between Rs5 lacs to 8 lacs and 10% tax on income between Rs1.6 lacs to 5 lacs.
The relaxation limit under section 80C has been inceased to Rs. 2 lakhs. He also announced that the exemption limit in Income Tax will be enhanced to Rs. 1.6 laks.
Besides this, the surcharge has also been withdrawn. Current surcharge on companies has also been reduced to 7.5%.
The presumptive tax limit has also been raised to Rs 60 lacs.
He also announced a deduction of Rs 20000 on investment in infra bonds.
Indirect Taxes:
Accredited news agencies exempt from service tax
Service sector tax retained at 10 percent to aid the introduction of GST; more services to be taxed
Toys fully exempt from central excise duty
Concessional customs duty of 5 percent for cable TV operators for importing equipment
Concessional duty of 4 percent for solar power rickshaw developed by Council of Scientific and Industrial Research
Clean energy cess of Rs.50 per tonne on coal produced in India
More services come under tax net
Service tax rates to be retained
Silver, gold import duty raised
Concession for medical equipments for hospitals retained
Excise duty cut on CFL
Customs duty on crude oil back to 5%
Excise duty on tobacco products hiked
Partial rollback of excise duty on cement and cement products
Excise duty on petrol, Diesel up by Re 1
Excise duty on SUVs, MUVs hiked
Excise duty on oil products hiked
Sops for real estate housing projects to be extended
To enhance tax audit limit for small businesses to Rs 60 lakh
To partially rollback central excise duty
Direct Taxes:
Tax Audit Limits has been increased from 40 lakh to 60 lakh & for professionals 10 Lakh to 15 lakh
Surcharge on domestic companies cut to 7.5%
MAT increased from 15 % to 18 %
Pranab announces new tax structure
No tax on income up to Rs 1.6 lakh
Rs 1.6 lakh - Rs 5 lakh slab taxed at 10%
Rs 5 lakh to Rs 8 lakh slab taxed at 20%
Tax on income above Rs 8 lakh at 30%
Saral - II for individual taxpayers in two pages
Advanced tax receipts expected at Rs 7.46 lakh cr
Interest on late payment of Tax has been increased.
Total expenditure is within target
General:
Rs 1,900 crore allocated for Unique Identification Authority of India.
Rs 1,73,552 crore provided for infrastructure.
Need to take firm view on opening up of the retail.
Government committed to ensure continued growth of Special Economic Zones development.
Repayment of loan by farmers extended by six months to June 30, 2010 in view of drought and floods in some part of the country.
One-time grant of Rs 200 crore provided to Tirupur textile cluster in Tamil Nadu.
Allocation for new and renewable energy ministry.
Clean Energy Fund to be created for research in new energy sources.
Rs 500 crore allocated for solar and hydro projects for Ladakh region.
Alternative port to be developed at Sagar Island in West Bengal.
Allocation for National Ganga River Basin Authority doubled to Rs 500 crore.
Government for competitive bidding for coal blocks for captive power plants.
Mega power plant policy modified to lower cost of generation; allocation to power sector more than doubled to Rs 5,130 crore in 2010-11.
Government proposes to set Coal Development Regulatory Authority.
Propose to maintain thrust of upgrading infrastructure in rural and urban areas. IIFCL authorised to refinance infrastructure projects.
Interest subvention for timely repayment of crop loans raised from one per cent to two per cent, bringing the effective rate of interest to five per cent.
Bottleneck of public delivery mechanism can hold us back.
Rs 200 crore provided for climate resilient agriculture initiative.
Government to provide Rs 16,500 crore to public sector banks to maintain tier-I capital.
Allocation for women and child development hiked by 80 per cent.
Government decides to set up National Social Security
Fund with initial allocation of Rs 1000 crore to provide social security to workers in unorganised sector.
Rs 1,270 crore provided for slum development programme, marking an increase of 700 per cent.
Allocation for development of micro and small scale sector raised from Rs 1,794 crore to Rs 2,400 crore.
One per cent interest subvention loan for houses costing up to Rs 20 lakh extended to March 31, 2011; Rs 700 crore provided.
25 per cent of plan outlay earmarked for rural infrastructure development
i
Road transport allocation raised by 13 per cent to Rs 19,894 crore, says FM.
Allocation for urban development increased by 75 per cent to Rs 5,400 crore in 2010-11.
Indira Awas Yojana scheme's unit cost raised to Rs 45,000 in plain area and Rs 48,500 in hilly areas.
Allocation for NREGA stepped up to Rs 40,100 crore in 2010-11.
For rural development, Rs 66,100 crore have been allocated.
Plan allocation for health and family welfare increased to Rs 22,300 crore from Rs 19,534 crore.
Plan allocation for school education raised from Rs 26,800 crore to Rs 31,036 crore in 2010-11.
Deficit in foodgrains storage capacity to be met by private sector participation.
Exclusive skill development programme to be launched for textile and garment sector employees.
Plan allocation for Ministry of Minority Affairs raised from Rs 1,740 crore to Rs 2,600 crore.
Plan outlay for Ministry of Social Justice raised by 80 per cent to Rs 4,500 crore.
Government to contribute Rs 1,000 per year to each account holder.
Highlights from other sources:
- Additional Rs 1,65,000 Crs for bank re-capitalisation
- Rs 3000 Crs for agricultural impetus
- Farm loan payments to be extended for six months
- Fertiliser subsidy to be reduced
- Rs 100 Cr woman farmer fund scheme
- Coal regulatory authority to be set up
- Clean energy fund to be established
- Interest subvention of 2% to be extended for handicrafts and SMEs
- Rs 200 Crs for Tamilnadu textile sector
- India faces a challenge of reverting to double digit growth
- Economy can achieve GDP growth of 10%
- Interest subvention for housing loans up to 1 lacs
- Allocation to defence raised to Rs 1.47 lac Crs
- Defence capex raised to Rs 60000 Crs
- Hope to implement Direct Tax Code from April 2011
- GST to be implemented from 2011
- Divestment target of Rs 25,000 Crs.
- Rs 1200 Crs assistance for drought in Bundelkhand
- Rs 48000 Crs for Bharat Nirman
- NREGA scheme allocation raised to Rs 41000 Crs
- Allocation to health Rs 22,300 Crs
- Allocation for school education up from Rs 26800 Crs to Rs 31036 Crs
- Allocation to power sector at Rs 5130 Crs
- Rs 10,000 Crs allocated for Indira Awaas Yojna
- Social Security Fund to have corpus of over Rs 1000 Crs
- Rs 2400 Crs for MSMEs
- Government to contribute Rs 1000 per month for pension security
- Rs 5400 Crs allocated for urban development
- Rs 66100 Crs allocated for rural development
- Rs 1900 Crs allocated for UID project
- Gross tax receipts Rs 7.46 lac Crs
- Govt to set up National Mission for delivery of justice
- 15% rise in planned expenditure
- Fiscal deficit target of 5.5% in FY11
- Excise on all non smoking tobacco raised
- Televisions to be costlier
- Mobile phones to become cheaper
- Cement to be costlier
- Refrigerators to be costlier
- 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
- Service Tax rates unchanged
- More services to be brought under tax net.