*UNION BUDGET 
2010-2011<http://www.daytrading.in/latest-news/union-budget-2010-2011.html>
*

*
INCOME TAX*



*Individual*

*Existing*

*Proposed*

>From Rs.1,60,001 to Rs 3,00,000 -10%

>From Rs.1,60,001 to Rs 5,00,000 -10%

>From Rs.3,00,001 to Rs 5,00,000 -20%

>From Rs.5,00,001 to Rs 8,00,000 -20%

Above Rs.5,00,000 -30%

Above Rs.8,00,000 -30%

   - 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* *Negative*

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

*AGRICULTURE* *P*

   - 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* *Neutral*

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

*Oil & Gas* *Positive*

   - 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* *Positive*

   - 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* *Neutral*

   - 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




-- 
With Regards,
Kushagra Mehta
http://www.daytrading.in

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