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The Union Budget 2010 presented by Finance Minster Pranab Mukerjee has been received with mixed feelings throughout India. Here is a glimpse into Budget 2010 which has been termed a ‘unimpressive’ by some and ‘welcoming’ by others.
BUDGET-2010
1. Fiscal deficit for 2010-11 5.5%.
Projected Fiscal deficit for 2011-12 4.8%
Projected Fiscal deficit for 2012-13 4.1%
2. Direct Tax Code will be introduced from 1.4.2011.
3. G.S.T. will be levied from 1.4.2011.
4. Return in Saral 2 form can be filed by salaries individual.
5. No change in Service Tax rate.
6. Advalorem excise duty increased from 8% to 10%.
7. New rate for individual/HUF is as under: -
Income does not exceed Rs.1, 60,000 - Nil
Income between Rs.1, 60,000 to Rs.5, 00,000 - 10%
Income between Rs.5, 00,000 to Rs.8, 00,000 - 20%
Income exceeding Rs.8, 00,000 - 30%
It means monetary gain/savings of Rs.51, 500 for individual having taxable income of Rs.8, 00,000.
8. No change in Rs.1, 00,000 investment in Section 80C but additional deduction of Rs.20, 000 for investment in infrastructure bond.
9. No change in income tax rate of Company but surcharge for Company having taxable income of Rs.1 Crore has been reduced from 10% to 7.5%.
10. Book profit tax or MAT under Section 115JB has been increased from 15% to 18%.
11. In house R & D expenditure will be allowed to the extent of 200%.
12. Contribution to college and other institutions doing R & D will be allowed 175%.
13. Tax audit limit under Section 44AB has been increased from turnover of Rs.40 lakhs to Rs.60 lakhs for business and from Rs.10 lakhs to Rs.15 lakhs for profession.
14. Limit for presumptive taxable income @ 8% of profit and gain on business increased from Rs.40 lakhs to Rs.60 lakhs.
15. Interest @ 18% per annum will be levied on delay of deposit of TDS.
16. For Charitable trust income from business upto Rs.10 lakh will not disqualify registration as charitable trust.
17. 2 more income tax return processing centre will be set up in addition to Bangalore.