UNION BUDGET-what it brings, take a look!!

Highlights

To waive excise duty on solar panels

Opposition walks out of Parliament over petrol price hike

Petrol prices to go up

Fresh services to be brought under service tax

Service tax to GDP ratio 1%

Service tax to result in net revenue gain of Rs 3000 cr

Customs duty on silver at Rs 1500/kg

Custom duty on gold to be reduced

Mobile phones to be cheaper

No capital gains tax on conversion of a business entity into Limited Liability Partnership

To encourage manufacture of accessories such as battery chargers and hands-free sets, the concessions will be extended the mobile phone sector

5% customs duty on crude petroleum back

Peak customs duty unchanged at 10%

FM raises central excise duty on all non-petroleum products from 8 to 10 per cent

Revenue loss of Rs 26,000 crore on direct tax proposals.

Taxes

• More services to be brought under service tax net
• Service tax to result in net revenue gain of Rs 3000cr
• Customs duty on gold to be reduced; silver at Rs 1500/kg
• Uniform concessional duty of 5% on all medical appliances
• Rationalising of customs on gaming software
• Custom duty of one of the key component of microwave oven reduced
• Peak customs duty unchanged at 10%
• Custom duty for importing of duplication of prints of films revised
• No capital gains tax on conversion of a business entity into Limited Liability Partnership
• Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations
• Nominal duty of 4% electric cars
• Partial rollback of excise duty on cement, cement products, large cars
• To levy excise duty of Re 1/litre on petrol
• R&D Corp Tax break up to 200%
• Uniform Direct Tax receipts to fall by Rs 56,000 cr
• Pilot project for tax grievances extended to 4 cities
• Direct tax scheme to result in revenue loss of Rs 26,000cr
• Corporate tax surcharge down from 10 to 7.5%
• Rs 20,000 additional tax break for infra bonds
• Corp Min Alternate Tax up from 15 to 18%
• New tax rates would offer relief to 60 per cent of tax-payers
• Direct tax slabs: income upto 1.6 lakh = nil, 1.6-5 lakh = 10%, 5-8 lakh = 20%,
• above 8 lakh = 30%
• Centralized Tax Centre at Bengaluru fully functional
• Gross tax receipts Rs 7.46 lakh crore
• Deferment of goods & service tax negative for corporates in FY10-11
• Direct tax to be implemented from April 1, 2011
• Simple tax system with minimum exemptions near completion

Markets

• Realty stock gain after tax sops for developers
• Nifty up 100 pts
• Sensex surges over 350 pts on direct tax sops
• BSE real estate index extends gains to 3% on sops to developers
• 12.30am: Markets responds positively, Sensex up 300 pts
• Banking stocks up, react to banking expansion plans
• Markets up by 100 points
• Fertilizer stocks up, react to reduction of subsidy
• 11.30am: BSE Sensex, Nifty up by 0.5%
• Markets react positively to Pranab speech
• 9am: BSE Sensex at 16,296.59, 0.26%
• 9am: NSE index at 4,880.55 0.4%

Prices

• Gold gets cheaper
• Petrol, Diesel to be expensive
• Mobile phones to be cheaper
• Large cars, SUVs to cost more
• Petro products, cigarettes to be expensive
• Fertilisers to be costlier after the reduction in subsidy
• High fuel prices added to inflation: Pranab
• Pranab Mukherjee said the govt would initiate action to bridge the gap between wholesale and retail prices.
• Govt promises to tackle food inflation in budget
• Calls for fiscal discipline have gained urgency as inflation is forecast by some economists to reach 10 percent in coming weeks as high food prices fuel broader inflation expectations.