Budget Snapshot 2010-11 : CHALLENGES
The first challenge is to maintain the GDP growth rate to over 9% p.a. then find the means to cross the double digit growth barrier
To address the weaknesses in government systems, structures and institutions at different levels of governance.
FINANCE MINISTER OF INDIA. Budget Snapshot 2010-11 Budget Snapshot 2010-11 : OVERVIEW OF ECONOMY
India among the first few countries in the world to implement major reforms to negate fallout of the global slowdown.
The growth rate in manufacturing sector in December 2009 was 18.5 per cent – the highest in the past two decades. Budget Snapshot 2010-11 Budget Snapshot 2010-11 : PEOPLE’S OWNERSHIP & IMPROVING INVESTMENT ENVIRONMENT
Government Plans to Raise more than Rs. 25,000 Crs. through Disinvestment of PSUs.
Methodology for calculation for Indirect Foreign Direct Investment in Indian Company has been clarified.
Granting Additional Banking Licenses to Private Banks to diversify their operations and provide more financial infrastructure. Budget Snapshot 2010-11 Budget Snapshot 2010-11 : Proposed Laws:
Direct Tax Code (DTC) to be implemented from 1st April, 2011.
GST to be rolled out from 1st April, 2011.
Introduction of pending Companies Bill, 2009 to replace the existing Companies Act, 1956. Budget Snapshot 2010-11 Budget Snapshot 2010-11 : DIRECT TAXES: Individual (Male)
Individual-Senior Citizen (Age > 65 Male / Female) Budget Snapshot 2010-11 Budget Snapshot 2010-11 : DIRECT TAXES (contd.):
Saving in Taxes for Individual (Example)
Deduction of an additional Investment of Rs. 20,000 in infrastructure Bond over and above existing limit of Rs. 100,000 (U/s 80 C) is allowed. Budget Snapshot 2010-11 Budget Snapshot 2010-11 : Direct Taxes (contd.):
To boost investment in Tourism, Initial Capital Investment in Two-Star hotels construction is allowed as Deduction from the incomes.
As one time relief to Housing & Real Estate Sector, extension of additional 1 year has been granted to complete the Projects to avail the deduction.
Surcharge on Corporate Income Tax has been Reduced to 7.5% from 10%
Minimum Alternate Tax on Book profits increased to 18% from 15%
Limit of Tax Audit U/s 44AB enhanced to Rs. 60 L from Rs. 40L.
Expenses on which, TDS is deducted during the Financial Year will be allowed as deduction only if TDS is paid before due date of filing of Income Tax Return.
Delay in payment of TDS will attract Interest @ 18% p.a. Vs. 12% p.a. Budget Snapshot 2010-11 Budget Snapshot 2010-11 : Budget Snapshot 2010-11 Direct Taxes (contd.):
Upward increase in threshold limit relating to TDS w.e.f. 1st Jul, 2010. Budget Snapshot 2010-11 : INDIRECT TAXES:
Basic Central Excise Duty on Non Petroleum Products increased from 8% to 10% Ad Valorem.
Central Excise Duty on Petrol & Diesel increased by Rs. 1 per liter.
Proportionate rise in Specific Duty for Cement and Cement clinkers.
Ad-Valorem Duty on Large cars ,Multi Utility Vehicle increased by 2% to 22%.
Reduction in Central Excise Duty on corrugated boxes and cartoons from 8% to 4%. Budget Snapshot 2010-11 Budget Snapshot 2010-11 : INDIRECT TAXES (Contd.):
Service Tax to be paid on residential / commercial premises to the Builder for following services:
1. Prime/preferential location charges for a flat/commercial space according to the choice of the buyer (i.e. Direction- sea facing, park facing, corner flat; Floor- first floor, top floor, Vastu- having the bed room in a particular direction; Number- lucky numbers).
2. Internal or external development charges which are collected for developing/ maintaining parks, laying of sewerage and water pipelines, providing access roads and common lighting etc;
3. Fire-fighting installation charges; and
4. Power back up charges etc. Budget Snapshot 2010-11 Budget Snapshot 2010-11 : INDIRECT TAXES (Contd.):
Renting of Immovable Property is now specifically brought into Service Tax net, levy of which was earlier stayed by an order of Delhi High Court, w.e.f. 1st July, 2006.
Transport of Goods by Railway will also be liable to service tax w.e.f. 01.04.2010 other than exempted goods @ 3.09% (i.e. 10.3% less 70% abatement) Budget Snapshot 2010-11 Slide 12: Thank You