V India among the first few countries in the world to implement

counter-cyclic policy package.

V The Advance Estimates for Gross Domestic Product (GDP)

growth for 2009-10 pegged at 7.2 per cent.

V The growth rate in manufacturing sector in December 2009

was 18.5 per cent ± the highest in the past two decades.

V A major concern during the second half of 2009-10 has been

the emergence of double digit food inflation.
= Government Plans to Raise more than Rs. 25,000 Crs. through
Disinvestment of PSUs.

= Methodology for calculation for Indirect Foreign Direct

Investment in Indian Company has been clarified.

= Granting Additional Banking Licenses to Private Banks.

V To quickly revert to the high GDP growth path of 9 per cent
and then find the means to cross the µdouble digit growth
barrier¶.

V To harness economic growth to consolidate the recent gains

in making development more inclusive.

V To address the weaknesses in government systems, structures

and institutions at different levels of governance
V Divestment process in progress for national mineral
development corporation and Satluj jal Vidyut Nigam

V Limit of turnover which need to be audited increases for Rs

60 Lakh for business and 15 Lakh for profession
V Limit of turnover for the purpose of presumptive taxation of
small businesses enhanced to Rs 60 lakh.
V Rs 1,73,552 crs provided for infrastructure development
which accounts for over 46 percent of the total plan
allocation.

V Allocation for road transport increased by over 13 per cent

from Rs. 17,520 crs to Rs 19,894 crs.

V Rs 16,752 crs provided for Railways, which is about Rs.950

crs more than last year.
V Plan allocation for power sector excluding RGGVY doubled
from Rs.2230 crore in 2009-10 to Rs.5,130 crore in 2010-11

V To introduce a competitive bidding process for allocating coal

blocks for captive mining

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V Direct tax code (DTC) to be implemented from 1st april, 2011.

V GST to be rolled out from 1st april, 2011.

V Introduction of pending companies bill, 2009 to replace the

existing companies act, 1956.
V Plan allocation for school education increased by 16 per cent
from Rs.26,800 crs in 2009-10 to Rs.31,036 crs in 2010-11.
V In addition, States will have access to Rs.3,675 crs for
elementary education under the Thirteenth Finance
Commission grants for 2010-11.
V An Annual Health Survey to prepare the District Health
Profile of all Districts shall be conducted in 2010-11.
V Plan allocation to Ministry of Health & Family Welfare
increased from Rs 19,534crore in 2009-10 to Rs 22,300 crore
for 2010-11.
V The Gross Tax Receipts are estimated at Rs. 7,46,651 crore

V The Non Tax Revenue Receipts are estimated at Rs. 1,48,118

crore.

V The total expenditure proposed in the Budget Estimates is Rs.

11,08,749 crore,which is an increase of 8.6 per cent over last
year.
V The Plan and Non Plan expenditures in BE 2010-11 are
estimated at Rs. 3,73,092 crore and Rs. 7,35,657 crore
respectively.

V Increases in plan expenditure is 15 % and non plan

expenditure is 6% over the be of previous year.
DIRECT TAXES: Individual (Male)
TAX RATES REVISED SLAB OLD SLAB
10% Rs. 1.60 L- 5.00 L Rs. 1.60L- 3.00L
20% Rs. 5.01 L- 8.00 L Rs. 3.01 L- 5.00 L
30% Above Rs. 8.00 L Above Rs. 5.00 L

Individual (Female)
TAX RATES REVISED SLAB OLD SLAB
10% Rs. 1.90 L- 5.00 L Rs. 1.80L- 3.00L
20% Rs. 5.01 L- 8.00 L Rs. 3.01 L- 5.00 L
30% Above Rs. 8.00 L Above Rs. 5.00 L
Individual-Senior Citizen (Age > 65 Male / Female)

TAX RATES REVISED SLAB OLD SLAB

10% Rs. 2.40 L- 5.00 L Rs. 2.10L- 3.00L

20% Rs. 5.01 L- 8.00 L Rs. 3.01 L- 5.00 L
30% Above Rs. 8.00 L Above Rs. 5.00 L
Saving in Taxes for Individual (Example)
6
6


 
  
Rs. 3.0 L p.a. Nil Rs. 1,030 Rs. 3,090
Rs. 5.0 L p.a. Rs. 20,600 Rs. 21,630 Rs. 23,690
Rs. 10.0 L p.a. Rs. 51,500 Rs. 52,530 Rs. 54,590

= Deduction of an additional Investment of Rs. 20,000 in

infrastructure Bond over and above existing limit of Rs.
100,000 (U/s 80 C) is allowed.
= To boost investment in Tourism, Initial Capital Investment in Two-Star hotels
construction is allowed as Deduction from the incomes.
= As one time relief to Housing & Real Estate Sector, extension of additional 1
year has been granted to complete the Projects to avail the deduction.
= Surcharge on Corporate Income Tax has been Reduced to 7.5% from 10%
= Minimum Alternate Tax on Book profits increased to 18% from 15%
= Limit of Tax Audit U/s 44AB enhanced to Rs. 60 L from Rs. 40L.
= Expenses on which, TDS is deducted during the Financial Year will be allowed
as deduction only if TDS is paid before due date of filing of Income Tax
Return.
= Delay in payment of TDS will attract Interest @ 18% p.a. Vs. 12% p.a.
-Excise
V Basic Central Excise Duty on Non Petroleum Products increased from 8% to 10%
Ad Valorem.

V Central Excise Duty on Petrol & Diesel increased by Rs. 1 per liter.

V Proportionate rise in Specific Duty for Cement and Cement clinkers.

V Ad-Valorem Duty on Large cars ,Multi Utility Vehicle increased by 2% to 22%.

V Reduction in Central Excise Duty on corrugated boxes and cartoons from 8% to

4%.
 Service Tax
= Service Tax to be paid on residential / commercial
premises to the Builder for following services:
1. Prime/preferential location charges for a flat/commercial space according to the
choice of the buyer (i.e. Direction- sea facing, park facing, corner flat; Floor- first
floor, top floor, Vastu- having the bed room in a particular direction; Number-
lucky numbers).
2. Internal or external development charges which are collected for developing/
maintaining parks, laying of sewerage and water pipelines, providing access roads
and common lighting etc;
3. Fire-fighting installation charges; and

4. Power back up charges etc.

÷Service Tax
V Renting of Immovable Property is now specifically brought
into Service Tax net, levy of which was earlier stayed by an
order of Delhi High Court, w.e.f. 1st July, 2006.

V Transport of Goods by Railway will also be liable to service

tax w.e.f. 01.04.2010 other than exempted goods @ 3.09%
(i.e. 10.3% less 70% abatement)
V Impact was neutral

V Prices of steel products are expected to rise by Rs 500-750

per tonne

V Infrastructure investment in railways, urban development and

housing is likely to spur demand for steel marginally.
V Impact was negative

V MAT has increased from 15% to 18%

V Averall impact was positive on passenger car

V Impact on commercial vehicles sector will be marginally

negative.

V Commercial vehicle prices will rise in line with the increase

in excise duty

V Passenger car prices are expected to rise by Rs 6,000-7,000

V Impact of the union budget 2010-11 on the sugar sector is
Neutral.

V Impact on the domestic petrochemical industry is neutral

with no changes announced in the excise or customs duties of
petrochemicals.
V Impact was Positive

V Extension of the 2 per cent interest subvention on pre and

post shipment export credit till March 31, 2011 will help
small exporters reduce their interest costs

V Excise duty increases from 8% to 10%