UNION BUDGET 2010

HIGHLIGHTS

■To waive excise duty on solar panels
■Opposition walks out of Parliament over petrol price hike
■Petrol prices to go up
■Fresh services to be brought under service tax
■Service tax to GDP ratio 1%
■Service tax to result in net revenue gain of Rs 3000 cr
■Customs duty on silver at Rs 1500/kg
■Custom duty on gold to be reduced
■Mobile phones to be cheaper
■No capital gains tax on conversion of a business entity into Limited Liability Partnership
■To encourage manufacture of accessories such as battery chargers and hands-free sets, the concessions will be extended the mobile phone sector
■5% customs duty on crude petroleum back
■Peak customs duty unchanged at 10%
■FM raises central excise duty on all non-petroleum products from 8 to 10 per cent
■Revenue loss of Rs 26,000 crore on direct tax proposals
■Stimulus-led excise duty rollback partially reversed
■FM allows housing projects to complete projects in 5 years instead of 4 years to avail tax break
■One-time interim relief to housing and real estate sector
■Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations of their accounts
■Uproar in Parliament over petrol price rise
■To levy excise duty of Re 1/litre on petrol
■New tax rates would offer relief to 60 per cent of tax-payers
■CET on petroproducts hiked by Re 1
■Uniform Direct tax receipts to fall by Rs 56,000 cr
■Standard excise rate up from 8 to 10%
■Large cars, SUVs excise up to 22% from 20%
■Sops for real estate, housing projects extended by a year
■Partial roll back the rate reduction in central excise
■Direct tax scheme to result in revenue loss of Rs 26,000 cr
■Compliance burden reduced on professionals and entrepreneurs
■Corporate tax surcharge down from 10 to 7.5%
■New income tax slabs will bring relief to the middle class
■Rs 20,000 additional tax break for infra bonds
■Minimum Alternate Tax hiked to 18%
■R&D allocation increased 200%
■To unveil new Saral 2 form for salaried individuals in two pages
■Deduction of additional 10% for investment on infrastructure bonds
■Tax slabs: Broadening 1.6 lakh - Nil above 1.6 lakh-up to 5 lakh 10%
■5-8 lakh- 20% above 8 lakh- 30%
■Tax paying interface to be de-cluttered
■States to be offered assistance to computerise commercial taxes
■Greater transparency in tax administration targeted
■Centralized Tax Centre at Bengaluru fully functional
■Fiscal deficit at 5.5% for FY'11
■Rolling target for fiscal deficit 4.2%
■Gross tax receipts at Rs 7.46 lakh cr
■New symbol for Indian Rupee
■Tech advisor group under Nandan Nilekani
■Allocation for development of micro and small scale sector raised from Rs 1,794 cr to Rs 2,400 cr
■Rs 2,600 cr for Minority Affairs Ministry
■To create 50 cr skilled workers by 2022
■Rs 1,900 cr to UID authority allocated
■First set of UID to be issued by this year
■Rs 19,484 cr allocated for road development, to build 20 km of highway every day
■Subsidy for affordable housing extended
■Skill development programme for textile and garment sector
■Pvt sector to meet deficit in grain storage
■50% increase in women & child development allocation
■Development of rural infra remains high priority area
■Power sector allocation doubled to Rs 5130 cr
■Rs 400 cr corpus for micro-finance scheme
■National pension scheme allocation increased
■States to get Rs 3,675 crore for primary education at rural level
■Rs 400 cr corpus for micro-finance scheme
■NREGA allocation to Rs 40,100 crore
■National Social Security fund to be set up for unorganized sector
■Urban Development allocation to be raised by 75 per cent
■20,000 mw of solar power by 2022
■Rural development allocation to Rs 61,000 cr
■Indira Awaas Yojana allocation raised in proportion to plain and hill area housing
■Development of rural infra remains high priority area
■Social sector spending at Rs 1.38 lakh cr for FY11
■Rs 500 cr for Clean Ganga Mission
■Rs 66, 100 cr for rural development in FY10-11
■Allocation for school education up from Rs 26, 800 crore to Rs 31, 036 cr
■Rs 22, 300 crore allocated for Health Ministry
■Coal regulatory authority proposed
■Rs 300 cr for Rashtriya Krishi Vikas Yojana
■Bank farm loan target: Rs 3.75 lakh crore
■Rs 200 cr To Tamil Nadu for textiles
■Need to take firm view on opening up of the retail sector
■National clean Energy Fund to be set up
■Rs 200 crore to Goa as a special golden jubilee package to restore beaches and increase green cover
■To provide 2% loan subsidy to farmers
■Extend loan payment by calamity hit farmers
■Rs 400cr for four-part strategy for agriculture
■2% interest subvention for exports extended
■Additional banking licenses for pvt players
■4 pronged strategy for agriculture
■Rs 16,500 cr capital support for PSU banks
■Will consider Parikh report on fuel pricing
■Goods and services tax to be introduced in 2011
■Fertiliser subsidy to be reduced
■GDP growth for FY'10 is seen at 7.2 pc
■Rs 25,000 cr disinvestment target this year
■India weathered economic crisis well
■Direct tax code to be implemented from April 1, 2011
■Gradual phasing out of economic stimulus
■Pvt investment can sustain 9 pc growth
■First challenge: Return to GDP growth
■Manufacturing growth highest in the past 2 years
■Indian economy is in a far better position today
■FM is expected to simplify tax laws in 2010
■Biggest challenge is to make the growth all inclusive
■Need to strengthen food security
■Pranab: Indian economy has stood through the test of time
■Economic growth slows down to 6 pc in Q3
■Finance Minister presents Budget 2010
■Pranab Mukherjee presents his 5th Union Budget
■Finance Minister Pranab Mukherjee reaches Parliament
■Inflation is forecast to reach 10 percent in coming weeks
■Government borrowing was forecast to rise by another 2.2 percent
■Economists forecast India may cut its fiscal deposit to 5.6% of GDP


TAXES

■More services to be brought under service tax net
■Service tax to result in net revenue gain of Rs 3000cr
■Customs duty on gold to be reduced; silver at Rs 1500/kg
■Uniform concessional duty of 5% on all medical appliances
■Rationalising of customs on gaming software
■Custom duty of one of the key component of microwave oven reduced
■Peak customs duty unchanged at 10%
■Custom duty for importing of duplication of prints of films revised
■No capital gains tax on conversion of a business entity into Limited Liability Partnership
■Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations
■Nominal duty of 4% electric cars
■Partial rollback of excise duty on cement, cement products, large cars
■To levy excise duty of Re 1/litre on petrol
■R&D Corp Tax break up to 200%
■Uniform Direct Tax receipts to fall by Rs 56,000 cr
■Pilot project for tax grievances extended to 4 cities
■Direct tax scheme to result in revenue loss of Rs 26,000cr
■Corporate tax surcharge down from 10 to 7.5%
■Rs 20,000 additional tax break for infra bonds
■Corp Min Alternate Tax up from 15 to 18%
■New tax rates would offer relief to 60 per cent of tax-payers
■Direct tax slabs: income upto 1.6 lakh = nil, 1.6-5 lakh = 10%, 5-8 lakh = 20%,
■above 8 lakh = 30%
■Centralized Tax Centre at Bengaluru fully functional
■Gross tax receipts Rs 7.46 lakh crore
■Deferment of goods & service tax negative for corporates in FY10-11
■Direct tax to be implemented from April 1, 2011
■Simple tax system with minimum exemptions near completion

MARKET

■Realty stock gain after tax sops for developers
■Nifty up 100 pts
■Sensex surges over 350 pts on direct tax sops
■BSE real estate index extends gains to 3% on sops to developers
■12.30am: Markets responds positively, Sensex up 300 pts
■Banking stocks up, react to banking expansion plans
■Markets up by 100 points
■Fertilizer stocks up, react to reduction of subsidy
■11.30am: BSE Sensex, Nifty up by 0.5%
■Markets react positively to Pranab speech
■9am: BSE Sensex at 16,296.59, 0.26%
■9am: NSE index at 4,880.55 0.4%

PRICES

■Gold gets cheaper
■Petrol, Diesel to be expensive
■Mobile phones to be cheaper
■Large cars, SUVs to cost more
■Petro products, cigarettes to be expensive
■Fertilisers to be costlier after the reduction in subsidy
■High fuel prices added to inflation: Pranab
■Pranab Mukherjee said the govt would initiate action to bridge the gap between wholesale and retail prices.
■Govt promises to tackle food inflation in budget
■Calls for fiscal discipline have gained urgency as inflation is forecast by some economists to reach 10 percent in coming weeks as high food prices fuel broader inflation expectations.