Yes, after a long time got a thought to post something informative here in this space. Luckily, this thought has come on this right day, on which our FM (read it as Finance Minister yaar… not as Radio FM…:) ) has presented this fiscal year budget of our country.
So let me jolt out some points that I thought we citizens should be aware out of this budget…. And here I go…
Always 1st priority goes for Aam Aadmi… so for us…
New Income Tax slab:
- Up to Rs 1.6 lakh
Nil (earlier slab was Rs 1.6 – 3 lakh)
- Above Rs 1.6 lakh and up to Rs 5 lakh
10% (earlier slab was Rs 3-5 lakh).
- Above Rs 5 lakh and up to Rs 8 lakh
20% (earlier slab was 5 lakh).
- Above Rs 8 lakh
30 % flat.
Bonus Tax Exemption: (For one & only people who save J)
Income tax exemption of Rs.20,000 in Infrastructure bonds, in addition to the existing exemption 1 Lakh.
Home Loan Buyers: Good news ppl for you ppl!!
One percent interest subvention scheme for housing loans extended to one more year.
You goanna pay more: Just see below for what!!!
For the dearest fuels… petrol & diesel… Yep… Re.1 has excise duty is raised for these fuels… and also has been said that parekh committee on fuel price deregulation will be taken up my ministry in due course.. so going to cost our pockets for sure… L
Think before you plan:
Import duty on gold and silver hiked.. there may be hike in market price of these metals too..
Yay!! Once again!!
Cigarettes & tobacco products are going to be made costlier again!!! 🙂
Who’s next… the real backbone of our nation… the noblest farmers who do agriculture for us…
Interest subvention for timely repayment of crop loans has been raised from one per cent to two per cent, bringing the effective rate of interest to five per cent.
Then… For the ministry of our brave Jawans…
Allocated Rs 1, 47,344 crore for Defense. This is a mere 4% hike when compared to 36 % last year.
But you should know one thing… this constitutes about 2.5% of our nation’s total GDP… Need to be secured na!!
We need to wait for one more year to see this tax revolution…
Direct Tax Code:
This was proposed in last budget to the four decades old Income Tax Act and planned to implement this year. But now it is believed to be hopefully implemented from April 2011. Here is some great changes that comes with this code:
10 percent tax rate should apply to an annual income of Rs 1.6-10 lakh per annum and the 20 per cent rate to Rs 10-25 lakh.
Maximum rate of 30 per cent should apply to income above Rs 25 lakh per annum.
tax rates for companies should be reduced to 25 per cent for both domestic and overseas companies from current tax rate of 30%
Suggests reintroduction of tax on long term capital gains on securities trading.
Goods & Service Tax:
GST, which was about to replace most indirect taxes at central and states levels like service tax, excise duty, VAT, cesses, surcharges and local levies is also believed to be tabled from April 2011.
Yay!!! We are going to get it soon!!!
Thinking what?!?! A unique identity symbol for our Indian Currency ‘Rupee’ just like US Dollar, British Pound Sterling, Euro and Japanese Yen.
The double digit food inflation last year was due to bad monsoon and drought like conditions… Not a bad reason… but something should have been done by the govt… right??
Yep, really it’s an eyebrow raising one… The government has reported a 18.5% growth in manufacturing sector last year.. know what??? This is the highest reported in last two decades… isn’t it a eyebrow raiser???
Tit-bits for you!!
The Government has decided to raise Rs 25,000 crore from disinvestment of its stake in state-owned firms, which constitute to the inflow to the accounts.
Rs.1,900 Crore has been allocated to Unique Identification Authority of India, which is being led by Nandan Nilekani.. It’s really a must do… coz a promising & very essential project it is…
One-time grant of Rs 200 crore provided to Tirupur textile cluster in Tamil Nadu.
There is a fiscal deficit of 5.5% reported for this year… but still… the government is optimistic saying that it will slide down to 4.8 per cent and 4.1 per cent in 2011-12 and 2012-13 respectively… let’s hope!!!
Hope this post was a little informative!!! Cya in next post!!!