Every year we look forward to the budget with a lot of hope and expectations. The budget may or may not fulfil our expectations, but it always remains a big event for us. So Memsaab brings you the main points of interest from this year's budget. Last year's interim budget presented by Finance Minister Pranab Mukherjee drew favorable response to his multiple reference to the "aam aadmi". This year, Mr. Mukherjee has again referred to the same aad aadmi, but with a decreased focus. Here is what Mr. Mukherjee has proposed for the economy (and YOU) this year:
Pranab Mukherjee's Budget 2010
Personal Income Tax slabs have been widened this year. This means that now you will be able to take home more of your income. The 10% slab has been widened from 1.6L-3L to 1.6L-5L for men and from 1-9-3L to 1.9-5L for women. This means that the 20% tax rate kicks in for the income slab 5L-8L for everyone, and the 30% rate applies to the income slab of >8L. Senior citizens will pay tax only for income above 2.4L.
* Hybrid, electric & solar powered cars will be cheaper. So GO GREEN!
* Mobiles, battery chargers, Playstations, X-Box, Microwave ovens to cost less. Pamper your kids!
* Homeopathic, Allopathic and Ayurvedic medicines will cost less. But that's not your cue to fall sick, ladies!
* Most manufactured goods, including cars, will cost more due to 2% hike in excise duty. Maruti & Hyundai have already made an announcement and other companies will follow suit.
* Petrol & Diesel will be dearer by more than 2 Rs per litre. Go for Public transport, ladies!!!
* Domestic airfares will rise further.
* Tobacco products like cigarettes, cigars and chewing tobacco to cost more.
* Precious metals (Gold, Silver & Platinum) will be more expensive. Not good!
* Service tax on purchasing new property in a complex where payment was made prior to completion certification by builder.
Investing in long term infrastructure bonds will now fetch you an Income Tax deduction (for investment upto Rs 20,000), over and above the 1,00,000 limit under Section 80-C of the IT Act. The Finance Minister has also porposed an ambitious sell off plan wherein you can now invest in Public Sector blue chip company stocks.
The filing of Income Tax will now be less of a headache for you. The FM has proposed a new simple 2-page Form for filing the IT returns, aptly called "Saral-2". You will have to fill in very basic and simple details, without bothering with attaching any documents. This form will be in use from the coming assessment year.
Also, the compliance budern of businesses and salaried people has been reduced. The size of business turnover for which accounts must be audited has been increased from Rs. 40L to Rs. 60L. Similarly, for salaried people, the income for which accounts MUST be audited has been increased from 10L to 15L. Less headache for you, right?
Though the slabs have been widened, the lower income group has not really gained anything out of this year's budget. But the middle class has certainly received some benefits. What do you think? Do you find udget 2010 favorable, unfavorable or unimportant? Please share in the comments section below.