The Cenvat rate for excise duty is expected to rise by 2 percentage points. Raising the excise duty would be the first step towards mending the fiscal deficit.
The Day traders in export market are looking forward for an update regarding the Securities Transaction Tax (STT) in the forthcoming Union Budget. As per the government's proposed Direct Tax Code (DTC), STT is very likely to be abolished.
The mutual fund (MF) industry expects the finance ministry to retain the existing tax benefits available to investors in MF schemes in the forthcoming Union budget.
Despite intense lobbying from the industry to bring in concessions to the corporate tax regime, the government may not dabble with rates or at least do away with the surcharge and cess or additional tax.
The Union Budget 2010 carried loads of expectations and now, when it's finally showcased, let's have a look at the key aspects of Pranab's Budget 2010.
The salaried middle class can celebrate this budget by the reworked personal income tax slabs and a new tax exemption option. Most Indian corporates have reason to be happy with the surcharge on corporate tax coming down from 10% to 7.5%. As a whole the modifications in Income Tax can be termed as good.
Besides this, the announcements like the proposal to issue new banking licences to the private sector will surely please business groups for entry into the sector. Increasing the defense budget, healthy funding of infrastructure development schemes, stress on SEZs etc seem to be sufficient to make the country feel satisfied.
However, the common man will be hardly pleased with the hike in fuel prices and extended coverage of service tax to things like domestic air travel and under-construction houses etc. Increased cost of commodities like jewelery, refrigerators, tv etc will do no wonders to the suffering of 'aam aadmi'.
In spite of all these facts, the Budget seems to give more than it takes and deserves an honest appreciation. Let's wait for the application of Direct Tax Code which has been declared to be applicable from April 1, 2011. Hope that redued rates and fewer exemptions will help both the government and citizens.
Ahead of the Union Budget 2010-2011, Finance Minister Pranab Mukherjee presented Economic Survey 2009-2010. The economic survey focused on main concerns like high inflation and fiscal deficit which are expected to be addressed in the upcoming budget. The economic growth is projected at 8.5% (+/- 0.25%) in FY11 and also expected to grow at 9% in FY12, compared with projected growth of around 7.5% in the current year.
Main Highlights Of Economic Survey are :
The upcoming Union Budget 2010-11 is likely to include new norms for granting government I-T contracts which could result in ending the monopoly of I-T giants in the servicing sector.
With expectations of more Duronto Trains from railways, people are looking forward for a passenger-friendly budget. Introducing new trains, improved train services and more facilities on railway stations. New routes connecting the remote destinations and towns and the most importantly refrain from a hike in passenger fair.
Mamata is considering the views and proposals of the industry people for the betterment of Railways and also welcomed the innovative ideas and suggestions regarding the public-private partnership (PPP) for various existing and future Railway projects