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Features of Union Budget 2009-2010

Union Budget 2009-2010 is out today. Here we are offering information on features of union budget 2009-2010. 

  • Customs duty on bio-diesel reduced. 
  • Silver to cost more. 
  • Tax to be levied on Law Firms.
  • Textile units to receive tax holiday. 
  • LCD TVs to cost less. Custom duty on LCD TVs cut from 10% to 5%. 
  • Set-Top Boxes to cost more. Customs duty of 5% on set-top boxes. 
  • To extend tax holiday for commercial production of mineral oil and natural gas. 
  • Enhance budgetary support by Rs 40,000 cr.

 

  • Service tax levied on law firm 
  • Custom duty on gold re-imposed 
  • Customs duty to be reduced on drugs for heart treatment 
  • No new tax on edible oil imports4 per cent excise duty on cotton products restored 
  • Customs duty on bio-diesel reduced 
  • Life saving devices on heart condition exempted from custom duty

 

  • Small business exempt from advance tax 
  • To maintain overall customs and excise duty structure 
  • Tax holiday to natural gas extended 
  • Tax slab raised

 

  • MAT hiked to 15 per cent of book profit

 

  • Fringe Benefit Tax and Commodity Transaction Tax abolished. 
  • Personal income tax exemption hiked by Rs 10,000. No surcharge of 10% on personal income tax. 
  • Centralized processing center at Bangalore to streamline taxation. 
  • No change in corporate tax. 
  • Tax holiday for exporters extended until 2012
  • Personal income tax exemption hiked by Rs 10,000

 

  • Abolish fringe benefit tax

 

  • Goods and services tax from April 1, 2010 
  • Federal Tax/GDP ratio is 11.5 per cent 
  • No surcharge of 10 per cent on personal income tax 
  • Increase in exemption slab for senior citizen

 

  • No change in corporate taxes

 

  • Hike in IT exemption for women to Rs 1,90,000

 

  • Govt. committed to tax reforms 
  • Increase automation in direct tax collection 
  • New tax code in 45 days 
  • Centralized processing center at Bangalore to streamline taxation 
  • Income tax forms should be user friendly 
  • Tax system should be such that it should encourage voluntary compliance

 

  • Saral form 2 will be introduced

 

  • Fringe Benefit Tax abolished. 
  • No surcharge of 10% on personal income tax. 
  • No change in corporate tax. Increase in exemption slab for senior citizens by Rs 15,000.

 

  • Fiscal deficit at 6.8% of GDP. 
  • Proposes Rs 500 cr for rehabilitation of displaced persons of northern and eastern areas of Sri Lanka. 
  • Aila Relief proposed at Rs 1,000 crore. 
  • Increased allocation for higher education. Rs 2,113 cr for IITs and NITs. Rs 25 cr each for AMU campuses in Murshidabad and Mallapuram. 
  • Defence outlay goes up. Allowances to para-military forces at par with defence forces. 
  • One rank, one pension for ex-servicemen. 
  • Allocation for Commonwealth Games to be raised to Rs 3472 crore 
  • Online job exchange to be started with private partnership. 
  • Increased allocation for higher education. 
  • Allowances to para-military forces at par with defence forces. One rank, one pension for ex-servicemen. 
  • Hike in allocation for Commonwealth Games. 
  • Online job exchange to be started with private partnership. 
  • Unique ID plan to roll out in 12-18 months. 
  • Top people from private sector to be given responsibility of vital national projects. 
  • Interest subsidy for home loans up to Rs 1 lakh. 
  • Rural mega clusters in Bengal and Rajasthan. 
  • To add handloom clusters in West Bengal and Tamil Nadu.

 

  • 75% hike in irrigation projects. 
  • Rural Housing: Allocation to Indira Awaas Yojna hiked by 63% to Rs 8,883 cr. Rs 7000 crores for rural electrification scheme. 
  • Rs 31,100 crore allocation for NREGA. NREGA gave employment opportunities to more than 4.479 cr households.

 

  • Banks, insurance to stay with Govt. Banking network to be expanded.

 

  • Expert panel to look into petroleum product pricing. Domestic oil prices must be in sync with global prices. 
  • ‘Aam Admi’ is now the focus of all our programmes and schemes: Pranab

 

  • Tax system should be such that it should encourage voluntary compliance. 
  • Income Tax forms to be made user-friendly. Saral-II forms to simplify taxation process.

 

  • Tax collectors should be like honey bees without disturbing the flower but spreading the pollen: Pranab

 

  • Export Credit Guarantee scheme extended till March 2010. 
  • Stimulus package to print media extended till December 31. 
  • Farmers loan interest to come down to 6%. Interest subvention scheme for farm loans to be manitained. 
  • Additional budget allocation for farmers. 
  • IIFCL will refinance 60% of commercial bank loans in PPP. IIFCL to look at infrastructure needs. 
  • Mumbai flood management allocation hiked to Rs 500 cr.

 

  • 87% rise in urban renewal mission. Housing allocation hiked.

 

  • Fiscal stimulus at 3.5% of GDP 
  • Allocation for NHAI up 23% 
  • Trade in goods and services doubled in 2008 
  • Job creation hit due to economic slowdown: Pranab

 

  • Government took 3 stimulus packages to fight slowdown. The two worst quarters of the global economic crisis is now behind us: Pranab

 

  • Foreign capital inflow is important 
  • Increased focus on growth and encourage nation’s development 
  • Sustain growth rate of 9% for a longer period. Farm sector growth at 4% 
  • Union Finance Minsiter begins his speech.

 

  • This is Pranab Mukherjee’s 4th budget.

 

  • Cabinet approves Union Budget.

 

  • The grand idea of a slum-free India in five years may see FM allocate around Rs 1,500 crore in Budget 2009-10 for building 1,00,000 houses.

 

  • The government may extend the tax holiday for software exporters beyond March 2010.

 

  • The auction of 3G spectrum is expected to be a part of the budgetary announcements.

 

  • Sops expected for realty and tech sector

 

  • Banks to gain from tax deduction on mortgage interest

 

  • Likely to see uniform rate of corporate tax, FBT

 

  • Exemptions likely to be granted to bring down cost for infra projects

 

  • Price stability high on govt agenda

 

  • Import duty on steel may be hiked

 

  • Sugar industry wants market to determine prices

 

  • Markets waiting with bated breath for the budget announcement


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