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Live Commentary: Budget 2010-11 |
Proposal: Check out the Rediff Budget 2010 Coverage!
Proposal:
Personal income tax: Nil for income up to Rs 1.6 lakh, 10% for income between Rs 1.6 lakh and Rs 5 lakh.
Personal income tax: Income between Rs 5 lakh and Rs 8 lakh: Tax at 20%
Personal income tax: Above Rs 8 lakh, tax at 30%
Professionals with Rs 15 lakh income need account audit.
Proposal: Income-Tax department to notify simple two-page Saral 2 form for individuals for current year.
Proposal: Fiscal deficit pegged at 5.5% of GDP.
Proposal: Minimum Alternate Tax up from 15% to 18% on book profits.
Proposal: Markets rally on fiscal roadmap, tax proposals. Sensex up 354 points at 1.05 pm.
Proposal: Sops for real estate, housing projects extended by a year.
Proposal: Excise duty on large cars, SUVs raised to 22%, up 2%.
Proposal: Rs 1 per litre excise on petrol, diesel.
Proposal: Mobile accessories market to get tax breaks.
Proposal: Import duty on silver raised to Rs 1500 per kg.
Proposal: Net revenue gain of Rs 43,500 cr from customs, excise proposal or partial stimulus rollback.
Proposal: To provide subsidy in cash instead of bonds for fertiliser, oil
Proposal: Minimum alernate tax raised to 18%
Proposal: Customs duty on gold, platinum imports raised to Rs 300 from Rs 200.
Proposal: Service tax to GDP ratio is 1%
Proposal: Net revenue gain from tax proposals at Rs 20,500 crore.
Proposal: India emerges from global slowdown faster than any other nation, said FM.
Proposal: Sensex up 412 pts at 16,666
Proposal: Check out the Rediff Budget 2010 Coverage!
Proposal: Finance Minister's speech ends.
Proposal: FM lays the Finance Bill in Lok Sabha.
Proposal: Online news agencies to attract service tax.
Proposal: Direct tax proposals to give loss of Rs 26,000 crore; indirect tax to yield gain if Rs 45,000 crore.
Proposal: Some services hitherto not taxed would be brought under the purview of new Service Tax. These will be notified later.
Proposal: News agencies exempt from service tax.
Proposal: BJP and the other opposition parties stage a walkout in protest against 'inflationary budget', says Leader of Opposition Sushma Swaraj.
Proposal: Central excise on LED lights halved to 4%.
Proposal: Peak customs duty remains unchanged at 10%
Proposal: External commercial borrowing will be available for food storage industries
Proposal: Cut in duty for photovoltaic units
Proposal: No import duty on some equipment in road projects
Proposal: Service Tax: FM keeps rate at 10%. Some new services to come under service tax.
Proposal: Customs duty on gold to be reduced.
Proposal: Rationalisation of customs duty on gaming software.
Proposal: Toys to be cheaper, excise duty on toys removed.
Proposal: The Bombay Stock Exchange benchmark Sensex surged over 350 points within a minute of direct tax sops, including income tax concessions, proposed by Finance Minister Pranab Mukherjee in Budget 2010-11, while taking in its stride the partial withdrawal of stimulus measures.
Proposal: CET on petrol hiked by Rs 1 per litre. Entire opposition walks out.
Proposal: Mobile phones to be cheaper.
Proposal: Clean energy cess of Rs 50 per tonne to be levied on coal produced in India.
Proposal: Agricultural seeds exempt from service tax.
Proposal: Partial rollback of excise duty on cement.
Proposal: This is what led to the Opposition walkout in Lok Sabha: FM's proposal to hike customs duty on crude oil to 5 per cent, on diesel and petrol to 7.5 per cent and on refined other products to 10 per cent.
Proposal: Duties on smoking and non-smoking tobacco products up.
Proposal:
Live video! FM's Budget Speech
Proposal: For solar mission, solar power generating units rates are to be reduced by 5%.
Proposal: Full excise cut on electric cars.
Proposal: Cut on personal income tax rates will lead to savings of Rs 50,000 for income of up to Rs 8 lakh.
Proposal: No capital gains tax on conversion of a business entity into Limited Liability Partnership, says Mukherjee.
Proposal: Investment linked tax deductions to be allowed to two-star hotels anywhere in the country.
Proposal: Weighted deduction of 125 per cent for payments to approved associations doing social and statistical research.
Proposal: Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations of their accounts.
Proposal: FM allows housing projects to complete projects in five years instead of four years to avail tax break.
Proposal: Opposition parties stage a walkout, protesting against hike in excise duties on petroleum products.
Proposal: O
Proposal: Peak excise duty hiked from 8% to 10%.
Proposal: FUEL PRICES TO GO UP: Petroleum products: basic duty of 5% crude , 7.5% on diesel & petrol; 10% on other products
Proposal: Excise duty hiked from 8% to 10%.
Proposal: Market borrowing were up to 3,45,000 cr. Enough to meet credit need of private sector.
Proposal: Excise duty on large cars, SUVs, multi utility vehicles hiked
Proposal: Duties on smoking and non-smoking tobacco products up.
Proposal: Petroleum products: basic duty of 5% crude , 7.5% on diesel & petrol; 10% on other products.
Proposal: Structural changes in excise duties of tobacco, propose to extend excise duty.
Proposal: Surcharge for companies reduced to 7.5%.
Proposal: Professionals with Rs 15 lakh income need account audit.
Proposal: Due to direct taxes, result in a revenue loss of Rs 26,000 crore.
Proposal: Threshold limit for TDS applicability to be rationalized.
Proposal: Excise duty hiked from 8% to 10%
Proposal: At 12.30, Sensex up 321 pts at 16,574 points.
Proposal: CET on petro products hiked by rupee 1.
Proposal: partial excise rollback fro car and cement sectors.
Proposal: Cigarettes, tobacco to be costlier.
Proposal: New tax rates would offer relief to 60 per cent of tax-payers, says FM.
Proposal: Additional deduction of Rs 20,000 allowed on long-term infrastructure bonds for income tax payers; this is above Rs 1 lakh on saving instruments allowed already.
Proposal: Real estate sector now gets 5 years for completion instead of 4 years earlier.
Proposal: To boost tourism investment, offers investment linked tax deductions.
Proposal: Additional Rs 20,000 deduction available for investment in infrastructure bonds.
Proposal: Minimum Alternate Tax up from 15% to 18% on book profits.
Proposal: Current surcharge of 10% on domestic comp reduced to 7.5%.
Proposal: Real estate sector now gets 5 years for completion instead of 4 years earlier.
Proposal: Extended scope of presumptive taxes up to Rs 40 lakh.
Proposal: Market respond positively to FM's tax proposals: At 1220: Sensex up 238 pts at 16,492. NSE at 4,936.60 up 76.85 points.
Proposal: Income Tax proposals: Slab: Income above Rs 8 lakh -- tax will be 30%
Proposal: Income Tax proposals: Slab: Income above Rs 5 lakh and up to Rs 8 lakh -- tax will be 20%
Proposal: Income Tax proposals: Slab: Income above 1.6 lakh and up to Rs 5 lakh -- tax 10%
Proposal: Income Tax proposals: Slab: Income up to Rs 1.6 lakh -- tax will be nil
Proposal: Tax proposals: Income tax return form to be made simple, Saral 2 form for individuals to come into force. It has only two pages.
Proposal: Tax proposals: Direct Taxes Code by April 1, 2011
Proposal: FY11 fiscal deficit revised to 6.9%. FY13 fiscal deficit seen at 4.1%. Fiscal deficit seen at 4.8% in FY12.
Proposal: At 1210: Sensex up 79 pts at 16,332; Nifty up 19 pts at 4879
Proposal: FM set to declare Tax proposals.
Proposal: The market is still not sure how to react to the Budget and trading quiet. Same is the case with the Opposition parties in Lok Sabha.
Proposal: Fiscal deficit at 5.5 per cent, says FM, and that the government's expenditure is within target.
Proposal: A unique identity symbol would be provided to the Indian Rupee in line with US Dollar, British Pound Sterling, Euro and Japanese Yen.
Proposal: Government to contribute Rs 1,000 per year to each account holder under the new pension scheme.
Proposal: Plan outlay for Ministry of Social Justice raised by 80 per cent to Rs 4,500 crore.
Proposal: Plan allocation for Ministry of Minority Affairs raised from Rs 1,740 crore to Rs 2,600 crore.
Proposal: Financial Sector Legislative Reforms Committee to be set up.
Proposal: Nandan Nilekani-led Unique Identification Authority of India to get Rs 1,900 crore.
Proposal: Allocation to Defence over Rs 147,000 crore.
Proposal: Taskforce to counter problems in Maoist affected areas. Adequate funds will be allocated, says FM.
Proposal: Technology advisory group to be set up under UIDAI boss Nandan Nilekani.
Proposal: The stock market is as quiet as the Opposition benches. The market is up, but largely flat. And there is not a ripple of noise from the Oppn parties in Parliament. The FM reads on. . .
Proposal: Rs 4,500 crore for programme of social justice, senior citizens, backward classes, handicapped.
Proposal: Sign language training centre for hearing impaired.
Proposal: Smart card extended to NREGA.
Proposal: Smart card extended to NREGA.
Proposal: Union Budget 2010: Over 13% higher road allocation, a positive for HCC, IRB Infra, L&T, Gammon India, Punj Lloyd and Nagarjuna Construction, reports Zee Business.
Proposal: ALERT REPEAT: One per cent interest subvention loan for houses costing up to Rs 20 lakh extended to March 31, 2011; Rs 700 crore provided.
Proposal: Allocation for development of micro and small scale sector raised from Rs 1,794 crore to Rs 2,400 crore.
Proposal: Rs 1,270 crore provided for slum development programme, marking an increase of 700 per cent.
Proposal: The government decides to set up National Social Security Fund with initial allocation of Rs 1,000 crore to provide social security to workers in unorganised sector.
Proposal: Exclusive skill dev prog in textile and garment sector.
Proposal: Sensex up 103 points at 16356; Nifty up 35 points at 4,894.
Proposal: Rs 100 crore allocated for women farmers.
Proposal: ALERT! Housing loan: 1% interest subvention scheme extended, allocation Rs 700 crore.
Proposal: GOI signs $150-million deal with ADB for implementing Khadi programme, says FM.
Proposal: Khadi institutes get Rs 400 crore.
Proposal: Allocates Rs 100 cr for new pension scheme, to benefit 100,000 low income citizens.
Proposal: To allocate Rs 22,300 cr to Health Ministry.
Proposal: FM asks state governments to contribute for social security to workers in unorganised sector.
Proposal: Rs 48,000 cr for Bharat Nirman plan.
Proposal: Indira Awas Yojana scheme's unit cost raised to Rs 45,000 in plain area and Rs 48,500 in hilly areas.
Proposal: Allocation for urban development increased by 75 per cent to Rs 5,400 crore in 2010-11.
Proposal: Outlay for social sectors pegged at Rs 1,37,674 crore, accounting for 37 per cent of the total plan allocation.
Proposal: Deficit in foodgrains storage capacity to be met by private sector participation, says FM.
Proposal: Plan allocation for health and family welfare increased to Rs 22,300 crore from Rs 19,534 crore.
Proposal: Finance Minister Pranab Mukherjee today said government will soon come out with a draft Food Security Bill. 'A Draft Food Security Bill will be placed in public domain,' he said unveiling the 2010-11 budget in the Lok Sabha. The UPA in its election manifesto promised to enact Food Security Act to provide 25 kg of wheat or rice per month at Rs 3 per kg to Below Poverty Line (BPL) families.
Proposal: Allocation for new and renewable energy ministry increased by 61 per cent to Rs 1,000 crore.
Proposal: Allocation for National Ganga River Basin Authority doubled to Rs 500 crore.
Proposal: Alternative port to be developed at Sagar Island in West Bengal.
Proposal: Simplified FDI policy announcement is a good step taken by the finance minister.
Proposal: Indira Awas Yojana: Allocation up by Rs 10,000 crore.
Proposal: FM extends loan payment by calamity-hit farmers.
Proposal: States to get Rs 3,675 crore for primary education at rural level.
Proposal: Rs 66,1000 crore allocated for rural development in FY11.
Proposal: NREGS gets Rs 40,100 crore in FY11.
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Proposal: IIFCL disbursements at Rs 9000 cr by March 2010.
Proposal: NEWSALERT: School education outlay for FY11 at Rs 31,000 crore!
Proposal: Draft Food Security Bill will be in public domain soon, says FM.
Proposal: States to get Rs 3,675 cr for primary education at rural level.
Proposal: Government for competitive bidding for coal blocks for captive power plants, says FM.
Proposal: Rs 500 crore allocated for solar and hydro projects for Ladakh region.
Proposal: one time grant of Rs 200 crore to Tamil Nadu for the textile sector, especially in Tiruppur.
Proposal: Government for competitive bidding for coal blocks for captive power plants, says FM.
Proposal: Mega power plant policy modified to lower cost of generation; allocation to power sector more than doubled to Rs 5,130 crore in 2010-11.
Proposal: The government proposes to set Coal Development Regulatory Authority.
Proposal: Allocation for Railways fixed at Rs 16,752 crore, an increase of Rs 950 crore over last financial year.
Proposal: Some ripples of noise erupt from teh Opposition benches in the Lok Sabha in a bid to disrupt the Budget Speech, but Mukherjee merely smiles and chugs on. Quiet returns to Lok Sabha...
Proposal: To set up National Clean Energy Fund, says FM.
Proposal: Rs 1,73,552 crore provided for infrastructure development, says FM.
Proposal: Need to take firm view on opening up of the retail sector, says FM.
Proposal: Repayment of loan by farmers extended by six months to June 30, 2010 in view of drought and floods in some part of the country, says FM.
Proposal: Bottleneck of public delivery mechanism can hold us back, says FM.
Proposal: Interest subvention for timely repayment of crop loans raised from one per cent to two per cent, bringing the effective rate of interest to five per cent.
Proposal: Propose to maintain thrust of upgrading infrastructure in rural and urban areas. IIFCL authorised to refinance infrastructure projects.
Proposal: Plan outlay for Renewable energy ministry up 61%.
Proposal: Power allocation doubles to Rs 5,100 crore.
Proposal: Rs 200 crore provided for climate resilient agriculture initiative, says FM.
Proposal: Government to provide Rs 16,500 crore to public sector banks to maintain tier-I capital, says FM.
Proposal: The government today exuded confidence of introducing major reforms on direct and indirect taxes front in the form of Goods and Services Tax (GST) and Direct Taxes Code (DTC) from April one, 2011. 'I am confident that the government will be in a position to implement DTC from April one, 2011... It will be my earnest endeavour to implement GST along with DTC from April one, 2011,' Finance Minister Pranab Mukherjee said in his Budget speech. This means that GST would miss its earlier introduction deadline of April one, 2010, by a year. While DTC will replace the archaic Income Tax Act, GST will replace most indirect taxes at central and states levels like service tax, excise duty, VAT, cesses, surcharges and local levies.
Proposal: No disruptions yet, and the FM is smoothly reading on his speech.
Live video! FM's Budget Speech
Proposal: The Lok Sabha is quiet and listening very peacefully to the finance minister's proposals.
Proposal: To set up 5 more mega food park projects.
Proposal: At 11:32, Sensex up 91 pts at 16,345; Nifty up 29 pts at 4,888.
Proposal: Allocation for road transport Rs 19,894 crore.
Proposal: Timely repayment of crop loans: subvention raised from 1% to 2%.
Proposal: Govt is committed to growth of SEZ to promote exports.
Proposal: To provide Rs 400 crore to boost farm output in eastern India.
Proposal: External Commercial Borrowings to be available for cold storage.
Proposal: Farm loan repayment extended by 6 months.
Proposal: Government intends to make FDI policy user friendly by compling all guidelines into one document, says FM.
Proposal: RBI considering some additional banking licenses to private companies, NBFC will also be considered if they meet criteria, says FM.
Proposal: Government has decided to set up apex-level Financial Stability and Development Council.
Proposal: FM proposes allocation of Rs 200 crore for climate-resilient agricultural programme.
Proposal: To extend 2% interest subvention for exports for another year.
Proposal: FY11 capital for PSU banks at Rs 16,500 crore.
Proposal: Extends interest subvention of 2% for handloom, handicrafts for 1 more year.
Proposal: RBI may give license to some more private sector players and NBFCs.
Proposal: RBI may give license to some more private sector players and NBFCs.
Proposal: RBI may give license to some more private sector players and NBFCs.
Proposal: Rs 1,900 cr addl capital in four PSU banks.
Proposal: Ownership and control clearly defined in FDI policy, says FM.
Proposal: Markets remain firm.
Proposal: Market capitalisation of five PSUs listed since October increased by 3.5 times.
Proposal: Nutrient-based fertiliser subsidy scheme to come into force from April 1, 2010, says FM.
Proposal: Kirit Parekh report on fuel price deregulation will be taken up by Petroleum Minister Murli Deora in due course, says FM.
Proposal: The government will raise Rs 25,000 crore from disinvestment of its stake in state-owned firms, says FM.
Proposal: All you wanted to know about GST
Proposal: Goods and Services Tax to be implemented by April 2011, says FM.
Proposal: Additional banking licences to private players, says FM.
Proposal: GDP growth rate to reach 10% in future, says FM.
Proposal: NEWSALERT: FM says the government will consider the Parikh Panel recommendations on fuel pricing soon.
Proposal: PSU divestment mop-up seen at Rs 25,000 crore.
Proposal: Earnest endeavour to implement General Sales Tax in April 2011.
Proposal: Need to review the public spending and mobilise resources, says FM.
Proposal: Status paper on public debt within six months.
Proposal: At 11:20, Sensex is up 69 pts 16,323, Nifty is up 24 pts at 4,883
Proposal: Finance Minister says that the government hopes to implement direct tax code from April 2011.
Proposal: FM stresses on the need to make growth more broad-based.
Proposal: Need to ensure that the demand-supply imbalance is managed, says Mukherjee.
Proposal: Need to review stimulus imparted to econony, says FM.
Proposal: The government is conscious of the situation of price rise and taking steps to tackle it, says FM.
Proposal: Erratic monsoon and drought-like conditions forced supply side bottleneck that fuelled inflation, says FM.
Proposal: Double digit food inflation last year due to bad monsoon and drought-like conditions, says FM.
Proposal: Figures for merchandise exports for January encouraging after turnaround in November and December last.
Proposal: Export in January encouraging, says FM.
Proposal: 18.5 per cent manufacturing growth in December was highest in two decades, says FM.
Proposal: Economy stablished in Q1 of 2009 itself, says FM.
Proposal: Fiscal year 2009-10 was challenging for Indian economy, says FM.
Proposal: NEWSALERT: Need to review the fiscal stimulus and get back to fiscal consolidation, says FM.
Proposal:
Live video! FM's Budget Speech
Proposal: Focus shifted to non-governmental actors and an enabling government. The government concentrates on supporting and delivering services to the economically backward sections, says FM.
Proposal: We have strengthened food security, says Mukherjee.
Proposal: At home there was added uncertainty because of subnormal southwest monsoon, says the FM. Impressive recovery in the past few months. Can witness faster recovery in the coming months, says Mukherjee.
Proposal: Economic rebound vindicates the economic policies of the government, says FM.
Proposal: Need to strengthen food security, says FM.
Proposal: Medium term growth to cross double-digit growth barrier, says FM.
Proposal: Thrust in rural infrastructure spending a must, says FM.
Proposal: Second challenge is to make growth more inclusive and broad-based, says FM.
Proposal: First challenge is to quickly revert to 9% growth rate, says FM.
Proposal: Sensex is trading at 16340, up 80 points from its previous close, and Nifty is at 4888, up 29 points.
Proposal: Indian economy was facing grave uncertainty. Growth had started decelerating when interim and full budget for 2009-10 were presented, says the Finance Minister.
Proposal: NEWSALERT: Indian economy is far better position today, says FM. However, we still have a long way to go, he adds.
Proposal: 11:5 am: Sensex up 83 pts at 16,337; NSE Nifty up 27 poinst at 4,886
Proposal: Indian economy has weathered the world economic crisis well, says Finance Minister Pranab Mukherjee.
Proposal: Budget Speech begins!
Live video! FM's Budget Speech
Proposal: NEWSALERT: Pranab Mukherjee rises in Parliament to present the Budget.
Proposal: Expect a partial witdrawal of stimulus from the Union Budget, says Venu Srinivasan, president of CII on NDTV Profit. Would like to hear a clearer roadmap for divesment, he adds.
Proposal: However, many experts believe that the finance minister will most likely take some bold reform measures in the Budget, as recommended by the Economic Survey.
Proposal: That is the question that is likely to haunt the industry.
Proposal: With growth slipping to 6% in Q3 as opposed to 7.9% in Q2, will the finance minister be able to roll back the economic stimulus?
Proposal: NEWSALERT: Economic growth slows down to 6 per cent in the third quarter against 7.9 per cent in Q2 this fiscal.
Proposal:
Live video! FM's Budget Speech
Proposal: The market will find support at 200 DMA if we get a knee-jerk reaction from a disappointing Budget, says Atul Suri, market analyst, on CNBC TV18. He sees limited downside due to low expectations and believes that the markets are sitting on good cash levels.
Proposal: India Inc worried over divestment process. However%2C divestment stocks like EIL%2C Scooters India%2C ITI%2C Neyveli Ignite are all trading up.
Proposal: Markets up slightly%3A Sensex at 16%2C347.08%2C up 92.88 points%2C and NSE at 4%2C890.25 up 30.50 points at 10.50 am.
Proposal: We do not expect negative announcements in the Budget but would take a call on the market only after 1pm, says TS Harihar of ICICI Securities on Zee Business. He sees traders playing the market in a range with 5300 on the upside and 4600 on the downside. He advises buying Cairn India and ONGC and believes that Bharti Airtel is a good long-term buy.
Proposal: The Budget must look at clarity for tax reforms for 2011, says Michael Spencer of Deutsche Bank on NDTV Profit. He expects the Budget to take back some stimulus from last year and feels that it needs to outline a stable divestment plan for the next few years. Inflation remains a concern and a few rate hikes are likely to be seen this year, he adds.
Proposal: At 10.35, the Sensex is up 109 points at 16,362. Nifty up 23 pts at 4,882.
Proposal: Since agricultural growth has been poor in 2009, what measures will the Budget have to boost the country’s farm sector? Grain output was down by 18 million tones, and rice output down by 11 million tones. Moreover, buffer stocks did not help ease prices.
Proposal: Mittal also said, 'We need incentives for investments.'
Proposal: Check out the Rediff Budget 2010 Coverage!
Proposal: When asked about his expectations from Budget 2010-11, steel baron Lakshmi Mittal, said the govt should strive to grow at 10%.
Proposal: India’s core sector, comprising six key infrastructure industries, grew 9.4 per cent in January 2010, compared with 6 per cent in the previous month and 2.2 per cent in January 2009. The growth, signifying recovery in industrial manufacturing, was primarily led by an increase in the production of crude oil, electricity and finished steel last month.
Proposal: The Thirteenth Finance Commission, which presented its report on Thursday, has told governments at the Centre and states to set their fiscal house in order, even as it raised the share of taxes that the states would be entitled to receive over the next five years by 1.5 percentage points.
Proposal: Pranab Mukherjee arrives in Parliament to present his 5th Budget at 11.00 am.
Proposal: Will the Budget announce means to overcome the hurdles that are in the path of reforms - like implementing the direct tax code; FDI in rural banking, insurance, higher education and organised retail, and Goods and Services Tax by 2011
Proposal: Things NOT to expect ----- Income tax: Direct tax rates unlikely to be changed substantially: Mirroring the slowdown in economic growth, growth of direct tax collections slowed substantially in 2008-09 and clocked a low 8.5% growth in April-December 2009. With collections at Rs 250,000 crore (Rs 2.5 trillion) at the end of December 2009, the 2009-10 Budget Estimate of Rs 370,000 crore (Rs 3.7 trillion) is likely to be met although collections may fall substantially short of the revised target of Rs 400,000 crore (Rs 4 trillion). In view of the new direct taxes code to be implemented with effect from April 1, 2011, Budget 2010-11 is unlikely to introduce any major changes with regards to direct taxes.
Proposal: Things NOT to expect ----- In the same way, the government's numbers on fuel subsidies put out in the budget document will throw some hints as to which way the fuel policy will go.
Proposal: Things NOT to expect ----- The government's policy on fertilisers that was announced just days ahead of the budget, has given some sense of how fertiliser subsidies will be pruned as the government moves towards a nutrient based fertiliser subsidy regime.
Proposal: Things NOT to expect ----- No major announcement on subsidies: The finance minister may choose, to keep key policy announcements on subsidies outside the budget, but the direction to the forthcoming policies will have to be laid out in the budget.
Proposal: Things NOT to expect ----- No sector specific tax breaks: No significant measures seem likely for exports and the information technology sector. The government would prefer to wait and watch on how the global economy fares in the coming time.
Proposal: Things to expect ----- Pro-education norms: Substantial increase in both primary as well as secondary education allocations is expected. The new fundamental Right to Education between 6 to 14 years of age could be the focal point of reform. The Sarva Siksha Abhiyan may also get a boost.
Proposal: Things to expect ----- Rural reforms: The United Progressive Alliance agenda of inclusive growth is expected to translate into key steps for rural development. The estimated 0.2% decline in farm output for 2009-10 makes this initiative even more critical. While allocations to the flagship programmes will continue, the NREGA may not win large allocations, as the government would probably give priority to curb leakages and inefficient resources.
Proposal: Things to expect ----- Infrastructure development: Infrastructure development momentum will continue with flagship programmes like Bharat Nirman and JNNURM set to witness significant rise in allocations. The potential reform areas may include transparency in Public Private Partnership (PPP) project bids, land issues and the green signal to long-term bank finance for infrastructure. Other moves could include positive steps for affordable housing, a rise in National Highway Authority of India budgetary support besides national project status for certain state irrigation projects.
Proposal: Things to expect ----- Divestment: Late last year, the government announced measures that would give a significant boost to the disinvestment program. It is now mandatory for all profitable listed public sector enterprises to have minimum 10% public ownership. While the government has already divested its stake in NHPC, Oil India and NTPC, many more are likely to follow in the coming year.
Proposal: Things to expect --- Direct Taxes Code: The key change on the anvil is the proposed Direct Taxes Code. Given that the code aims to moderate tax rates, widen the tax base, and remove exemptions, it will have positive impact on government revenues. Goods & Services Tax: On the indirect tax front, the much-anticipated reform measure is the introduction of a uniform Goods and Service Tax (GST). Although the deadline for implementation is likely to be missed, the government appears keen on introducing the GST regime. The shift to GST is expected to significantly improve buoyancy from indirect taxes.
Proposal: Things to expect Revenue boosting measures: The government is likely to provide a roadmap for its disinvestment plan and Goods and Services Tax implementation in the budget. The government will aim at a sizeable inflow of Rs 25,000 crore (Rs 250 billion) from disinvestment proceeds (actual conversions will depend on stock market conditions).
Proposal: So what is it that you can expect from the Budget? And what should you not expect? Things to expect Fiscal prudence: Corrective measures to repair India's balance sheet seem imminent. The fiscal position stands stressed with a 16-year high deficit of 6.8% of GDP. With Central Statistical Organisation advance estimates hinting at a GDP growth of 7.2% for 2009-10, the government is bound to withdraw some of the stimulus doled out previously.
Proposal: Meanwhile, the rupee appreciated against the dollar by 9 paise to 46.31 in early trade today, tracking other firming Asian currencies. At the Interbank Foreign Exchange (Forex) market, the rupee appreciated by 9 paise to 46.31 a dollar. The rupee had ended lower by 8 paise at 46.40/41 in the previous session.
Proposal: 10:14 AM: Sensex is at 16322, up 68 points and Nifty is at 4880, up 20 points.
Proposal: 5. Section 80E: Under this section, one gets tax benefits on repayment of loan taken for higher studies or post graduation courses like engineering, medicine, management and others. The existing benefit is Rs 25,000.
Proposal: 4. Section 24: This deals with the interest paid on a housing loan. Under this section of the Income Tax Act, interest paid up to Rs 1.5 lakh a year on a home loan can be set-off from salary or business income, for a self-occupied property.
Proposal: 3. Section 80D: Under this section, a person can claim deduction for paying health insurance premium. The general deduction available to each taxpayer is Rs 15,000, for self, spouse and children combined. A person can claim Rs 15,000 additional deduction in case he pays for his or her parents' policy. If the amount is paid for a senior citizen, then one can claim an exemption of Rs 20,000.
Proposal: 2. Section 80C: This section includes instruments where an individual can invest to save tax. In addition, there are certain expenses such as, school or college fees for children that are included under this section. The current limit is Rs 1 lakh. Besides investment in the Employee Provident Fund and principal of home loan, there are a large number of instruments like post office saving schemes and equity linked savings schemes where one can invest to claim the deductions.
Proposal: So what could happen in the Budget this time? Here are 5 points to watch out for in the Budget: 1. Rates of income tax: This section gives the basic exemption limits and rates of taxation beyond a certain limit. If the basic limit is enhanced, it would mean more money at the hands of the individual. For instance, last July FM hiked the basic limit for individuals from Rs 1.5 to Rs 1.6 lakh. For women and senior citizens, the new limit is Rs 1.9 lakh and Rs 2.4 lakh, respectively.
Proposal: Check out the Rediff Budget 2010 Coverage!
Proposal: With Railway Minister Mamata Banerjee announcing a feel-good, populist Rail Budget, will Finance Minister Pranab Mukherjee too follow suit? Very unlikely, say experts. But let’s wait and watch.
Proposal: Finance Minister Pranab Mukherjee, who will be presenting his 5th Budget in Parliament, might take into account some reformist measures that the Economic Survey tabled on Thursday recommended. If that happens, the industry might be happy, but not necessarily the common man. Of course, the stock markets will get the required booster to soar, if the finance minister takes a reformist path.
Proposal: Never seen such low expectations ahead of a budget, says Ramesh Damani, member BSE, on CNBC TV18. He expects the markets to rally post the budget and does not see any reason for caution going into the budget. He says it is a good time to buy.
Proposal: The market opened on a flat but stable note. Currently the Sensex is at 16,326.08 points, up 71.88 pts, while the NSE Nifty is at 4,883.80 up 24.05 points.
Proposal: Finance Minister Pranab Mukherjee, who will be presenting his 5th Budget in Parliament, might take into account some reformist measures that the Economic Survey tabled on Thursday recommended. If that happens, the industry might be happy, but not necessarily the common man. Of course, the stock markets will get the required booster to soar, if the finance minister takes a reformist path.
Proposal: Also, don’t miss to SEE the finance minister's Budget Speech Live on rediff!
Proposal: Please join us m. for the LIVE Commentary on the Union Budget 2010-11, as we bring to you Finance Minister Pranab Mukherjee's Budget proposals even as he delivers the Budget Speech in the Lok Sabha. The Budget Speech will begin at 11.00 a.m.
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