HIGHLIGHTS OF UNION BUDGE

2010-
11
 HIGHLIGHTS OF UNION
BUDGET 2010-11
Income Tax Slab Revised

No tax for income upto 1.6 lakh.

For income between 1.6 lakh – 5 lakh
tax liability 10%. (old slab was Rs 1.6 to 3 lakh).
For income between 5 lakh – 8 lakh 20%. (old slab
was Rs 3-5 lakh).
For income above 8 lakh 30% (old slab was Rs 5
lakh +).
 Agriculture
• The total plan outlay for agriculture & allied
sector is to be increased by 15.80% to Rs
123.08 bn.
• The target for agriculture credit is proposed to
be raised to Rs 3,750.00 bn for FY11 from
Rs.3,250.00 bn in FY10.

Industry
MSME (Micro, Small & Medium Enterprises)
• Allocation for Micro, Small & Medium
Enterprises sector to be increased from Rs
17.94 bn to Rs 24.00 bn for the year FY11.
 Consumer Goods
The across–the-board increase in central
excise duty from 8% to 10% is likely to
result in overall increase in the prices of
consumer goods. The increase in the
central excise duty is likely to result in
increased prices of cigarettes.
Oil and Gas
• Customs duty at the rate of 5% is proposed to
be levied on crude petroleum, as compared to nil
earlier.
• Customs duty on motor spirit (petrol) and HSD
(diesel) is proposed to be increased from 2.5% to
7.5%.
• Customs duty on some other specified
petroleum products is proposed to be increased
from 5% to 10%.
• Central excise duty on petrol and diesel is
proposed to be enhanced by Re 1 per litre each.
Fiscal Arithmetic for FY11

For FY11, total expenditure is budgeted to

increase by 8.53% to Rs 11,087.49 bn. As in the
last budget, the Plan expenditure received a
major boost with an allocation of Rs 3,730.92 bn,
an increase of 18.37% over the FY10 RE.

The non-Plan expenditure is however budgeted to

grow at a slower pace; the expenditure on this
front is slated to increase by 4.15%.
 Gems & Jewellery
Customs duty raised from Rs 200 per 10 grams
to Rs 300 per 10 grams on gold and platinum,
and from Rs 1, 000 per kg to Rs 1,500 per kg on
silver.

• Finance
It has been decided by the Government, to set up
an apex-level Financial Stability and
Development Council, to monitor the macro
prudential supervision of the economy.

The Direct Tax Code, along with the goods and

services tax (GST) is expected to be
implemented from April 1, 2011.