Highlights Of Finance Ministers Budget Speech

* More services to be brought under Service Tax net * Customs and excise to net revenue gain of Rs 43,500 cr * Concessional excise duty of 4% on solar cycle rickshaws * Clean energy cess of Rs 50/ton on coal produced in India * Excise duty on cigarettes, cigars and cigarillos changed * Customs duty on crude oil hiked to 5%, diesel & petrol to 7.5% and on refined other products to 10% * No capital gains tax on conversion of business into LLP * Economy in far better position than it was eight years ago * First challenge is to quickly revert to 9% high GDP growth * Second to make growth more inclusive and consolidate gains * Hope to implement Direct Tax Code from April 2011 * Status paper on public debt within six months * Endeavour to implement General Sales Tax in April 2011 * Certain accredited news agencies exempted from service tax * Gross tax receipts pegged at Rs 7,46,656 crore for 2010-11 * Non-tax revenues at Rs 1,48,118 crore * Total expenditure pegged at Rs 11.8 lakh crore, up 8.6% * Defence allocation at Rs 1,47,344 crore in 2010-11 * Fiscal deficit seen at 5.5 per cent now * Fiscal deficit seen at 4.8% in FY11 & 4.1% in FY12 * Govt to continue giving cash subsidy for fuel & fertiliser * Govts net borrowing to be Rs 3,45,010 crore for 2010-11. * Income Tax department ready with two-page Saral-2 forms * Income Tax slabs broadened * Income up to Rs 1.6 lakh - nil * Income above Rs 1.6 lakh-up to Rs 5 lakh - 10 per cent * Income above Rs 5 lakh-up to Rs 8 lakh - 20 per cent * Income above Rs 8 lakh - 30 per cent * New tax rates offer relief to 60% of tax payers * Additional deduction of Rs 20,000 on long term infra bonds * Excise duty on all non-petro products hiked to 10% from 8% * One-time interim relief to housing and real estate sector * Housing projects given 5 yrs to complete to avail tax break * Investment linked tax deductions allowed to two-star hotels * Planning Commision to prepare action plan for Naxal-hit areas * Need to review stimulus imparted to econony * Need to review public spending and mobilise resources * High food inflation due to bad monsoon & drought conditions * Steps being taken to tackle price rise * Economy in far better position than it was eight years ago * Impressive recovery in past few months * Economy stabilised in Q1 of 2009 itself * 18.5% manufacturing growth in Dec highest in two decades * Faster recovery seen in the coming months * Figures for merchandise exports for January encouraging * Food security strengthened * Govts focus on services to economically backward sections * Hope to implement Direct Tax Code from April 2011 * Status paper on public debt within six months * Endeavour to implement General Sales Tax in April 2011 * Govt will raise Rs 25,000 cr from disinvestment in PSUs * Market cap of five PSUs listed since October up 3.5 times * Fuel price deregulation proposal will be taken up * Nutrient-based fertiliser subsidy from April 1, 2010 * FDI inflows steady; Govt simplifying FDI regime * To set up Financial Stability and Development Council * RBI mulling additional banking licenses to pvt sector * NBFC will be considered if they meet criteria * 2% interest subvention on handicraft exports for 1 more yr * Rs 200 crore for climate resilient agriculture initiative * Committed to growth of Special Economic Zones * Need for firm view on opening up retail sector * Farm loan repayment eased by 6 months till June 30, 2010 * Crop loan interest subsidy for timely payment raised to 2% * Propose to maintain thrust of rural, urban infra upgrade * IIFCL authorised to refinance infrastructure projects * Rs 1,73,552 cr provided for infrastructure development * Railways allocation hiked Rs 950 cr to Rs 16,752 crore * Govt proposes to set Coal Development Regulatory Authority * Mega power plant policy modified to lower generation cost * Allocation to power sector more than doubled to Rs 5,130 cr * Govt for competitive bid for coal blocks for captive power * Rs 500 crore for solar and hydro projects in Ladakh region * New Clean Energy Fund for research in new energy sources * Renewable Energy Ministry allocation up 61% to Rs 1000 cr * Rs 200 cr one-time grant to Tirupur textile cluster in TN