Highlights of Budget 2010

• §  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

• §  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

•  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%
  
  

§              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.