February 26, 2010 -Budget Highlights

UNION BUDGET 2010-11 – HIGHLIGHTS
PROPOSALS MADE:

• For rural infrastructure under Bharat Nirman Rs.48,000 crore allocated.
• Rs.40,100 crore allocated for MG NREGS.
• Under Indira Awas Yojana – unit cost raised to Rs.45000 in plains and Rs.48500 in hilly areas.
• Backward Region Grant Fund – allocation raised by 26% from Rs.5800 crore to Rs.7300 crore.
• Rs.1200 crore Additional Central assistance for drought mitigation in Bundelkhand region.
• Allocation of Rs.7500 crore for urban development.
• Housing and Urban Poverty Alleviation – allocation raised from Rs.850 crore to Rs.1000 crore.
• Scheme for 1% interest subvention on housing loan (upto Rs.10 lakh, where total cost does not increase Rs.20 lakh) extended till 31.03.2011.
• School Education – Plan allocation raised by 16%.
• Women and Child Development – Plan Outlay raised by nearly 50%.
• Rs.1000 crore for launching National Social Security Fund for unorganized sector (weavers etc.).
• Rashtriya Swasth Bima Yojana benefits to be extended to MG NREGS workers.
• Rs.100 crore to look into the needs of women farmers.Mahila Kisan Sashaktikaran Pariyojana to be launched in this regard.
• Ministry of Social Justice and Empowerment – plan outlay to be raised by 80% to Rs.4500 crore.
• Minority affairs – plan outlay raised by nearly 50% from Rs.1740 crore to Rs.2600 crore.
• To ensure that public sector banks attain a minimum 8% Tier-I Capital by 31.03.2011, Rs.16500 crore allocated.

TAXES:
DIRECT TAXES:
• No IT up to Rs.1.6 lakh
• 10% from Rs.1.6 lakh to Rs.5 lakh
• 20% from Rs.5 lakh to Rs.8 lakh
• 30% above Rs.8 lakh
• Surcharge on domestic companies reduced from 10% to 7.5%
• On book profits of companies Minimum Alternate Tax raised from 15% to 18%
• For the purpose of presumptive taxation, limit of turnover of small businesses raised to Rs.60 lakh.
• Limits of turnover for audit purpose raised to Rs.60 lakh for businesses and Rs.15 lakh for professions.

INDIRECT TAXES:
 Central Excise on all non-petroleum products raised to 10%
 Central Excise duty on petrol and diesel up by Re.1 each per litre
 Basic Duty of 5% on crude petroleum;7.5% on diesel and petroleum and 10% on refined products restored.
 Excise Duty on all non-smoking tobacco products increased.
 Uniform basic duty of 5% countervailing duty (CVD) of 4% on import of medical equipment.
 Certain orthopaedic implants exempted from import duty
 Toy balloons totally exempted from Central excise duty.
 Transportation by road of cereals and pulses exempted from service tax.