More on Union Budget 2010

February 26, 2010
• Union Cabinet approves Budget for 2010-11.
• Fiscal year 2009-10 was challenging for Indian economy
• First challenge before Government is to quickly revert to high GDP growth path of 9 per cent
• Second challenge is to harness economic growth to make it more inclusive and consolidate gains.
• Impressive recovery in the past few months. Can witness faster recovery in the coming months, says Mukherjee
• We have strengthened food security, says Mukherjee.
• 18.5 per cent manufacturing growth in December was highest in two decade.
• Figures for merchandise exports for January encouraging after turnaround in November and December last.
• Need to review stimulus imparted to economy, says FM.
• Need to ensure that the demand-supply imbalance is managed, says Mukherjee.
• FM appeals to “misguided elements” (left wing extremists) to eschew violence and join the mainstream.
Expenditure/ deficit and revenue

• Total expenditure pegged at Rs 11.8 lakh crore, an increase of 8.6 per cent.
• Non-plan expenditure pegged at Rs 37,392 crore and Plan expenditure at Rs 7,35,657 crore in budget estimates.
• 15 per cent increase in plan expenditure and six per cent in non-plan expenditure.
Fiscal deficit pegged at 5.5% for 2010-11, says FM
• Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011-12 and 2012-13 respectively.
• Fiscal deficit pegged at 6.9 per cent in 2009-10 as against 7.8 per cent in the previous fiscal.
• Government’s net borrowing to be Rs 3,45,010 crore for 2010-11.
Taxes, Disinvestments and Exports/Imports

• Gross tax receipts pegged at Rs 7,46,656 crore for 2010-11, non-tax revenues at Rs 1,48,118 crore.
Income Tax department ready with two-page Saral-2 return forms for individual salaried assesses.
• FM prunes tax rates: Income up to Rs 1.6 lakh – nil
• Income above Rs 1.6 lakh and up to Rs 5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs 8 lakh – 20 per cent
Income above Rs 8 lakh – 30 per cent.
• Finance Minister says Government hopes to implement direct tax code from April 2011.
• Earnest endeavour to implement General Sales Tax in April 2011.
• Finance Minister to continue giving cash subsidy for fuel and fertiliser instead of previous practice of bonds.
• Status paper on public debt within six months.
• Market capitalisation of five PSUs listed since October increased by 3.5 times.
FDI inflows steady during the year. Government has taken series of steps to simplify FDI regime.
• Government intends to make FDI policy user friendly by complying all guidelines into one document.
• Government to continue interest subvention of 2 per cent for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises.
Tackling fuel/food price rise

• Double digit food inflation last year due to bad monsoon and drought-like conditions, says FM
• Erratic monsoon and drought-like conditions forced supply side bottleneck that fuelled inflation, says FM.
• Deficit in foodgrains storage capacity to be met by private sector participation.
• Government conscious of the situation of price rise and taking steps to tackle it, says FM.
• Kirit Parekh report on fuel price deregulation will be taken up by Oil Minister Murli Deora in due course, says FM.
Growth/Development schemes and proposals

• Government has decided to set up apex-level Financial Stability and Development Council.
• RBI considering some additional banking licenses to private companies, NBFC will also be considered if they meet criteria.
• Government committed to ensure continued growth of Special Economic Zones.
• Need to take firm view on opening up of the retail sector, says FM.
• Government proposes to set Coal Development Regulatory Authority.
• Government for competitive bidding for coal blocks for captive power plants.
• Clean Energy Fund to be created for research in new energy sources.
• Alternative port to be developed at Sagar Island in West Bengal.
• Exclusive skill development programme to be launched for textile and garment sector employees.
• Financial Sector Legislative Reforms Committee to be set up.
• Planning Commission to prepare integrated action plan for Naxal-affected areas.
• A unique identity symbol would be provided to the Indian Rupee in line with US Dollar, British Pound Sterling, Euro and Japanese Yen.

Rural and social sector development

• Govt to provide Rs 66,100 crore for rural development
• Outlay for social sectors pegged at Rs 1,37,674 crore, accounting for 37 per cent of the total plan allocation.
• Plan allocation for health and family welfare increased to Rs 22,300 crore from Rs 19,534 crore.
• Allocation for NREGA stepped up to Rs 40,100 crore in 2010-11.
Indira Awas Yojana scheme’s unit cost raised to Rs 45,000 in plain area and Rs 48,500 in hilly areas.
• Government will raise Rs 25,000 crore from disinvestment of its stake in state-owned firms.
• Government to provide Rs 16,500 crore to public sector banks to maintain tier-I capital.
• Rs 200 crore provided for climate resilient agriculture initiative.
• 25 per cent of plan outlay earmarked for rural infrastructure development.
• Allocation for urban development increased by 75 per cent to Rs 5,400 crore in 2010-11.
• One per cent interest subvention loan for houses costing up to Rs 20 lakh extended to March 31, 2011; Rs 700 crore provided.
• Rs 1,270 crore provided for slum development programme, marking an increase of 700 per cent.
• Government decides to set up National Social Security Fund with initial allocation of Rs 1000 crore to provide social security to workers in unorganised sector.
• Government to contribute Rs 1,000 per year to each account holder under the new pension scheme.
Finance allocation
• For rural development, Rs 66,100 crore have been allocated.
• Govt to provide Rs 66,100 crore for rural development
• Allocation for development of micro and small scale sector raised from Rs 1,794 crore to Rs 2,400 crore.
• Allocation for women and child development hiked by 80 per cent.
• Rs 1,900 crore allocated for Unique Identification Authority of India.
• Plan outlay for Ministry of Social Justice raised by 80 per cent to Rs 4,500 crore.
• Plan allocation for Ministry of Minority Affairs raised from Rs 1,740 crore to Rs 2,600 crore.
• Defence allocation pegged at Rs 1,47,344 crore in 2010-11 against Rs 1,41,703 crore in the previous year. Of this, capital expenditure would account for Rs 60,000 crore.
Infrastructure and Education

• Rs 1,73,552 crore provided for infrastructure development.
• Road transport allocation raised by 13 per cent to Rs 19,894 crore, says FM.
• Propose to maintain thrust of upgrading infrastructure in rural and urban areas. IIFCL authorised to refinance infrastructure projects.
• Road transport allocation raised by 13 per cent to Rs 19,894 crore.
• Allocation for Railways fixed at Rs 16,752 crore, an increase of Rs 950 crore over last financial year.
• Mega power plant policy modified to lower cost of generation; allocation to power sector more than doubled to Rs 5,130 crore in 2010-11.
• Rs 500 crore allocated for solar and hydro projects for Ladakh region.
• Allocation for new and renewable energy ministry increased by 61 per cent to Rs 1,000 crore.
• One-time grant of Rs 200 crore provided to Tirupur textile cluster in Tamil Nadu.
• Allocation for National Ganga River Basin Authority doubled to Rs 500 crore.
• Plan allocation for school education raised from Rs 26,800 crore to Rs 31,036 crore in 2010-11.
Agriculture

• Nutrient based fertiliser subsidy scheme to come into force from April 1.
• Nutrient based fertiliser subsidy will reduce volatility of subsidy and also reduce it
• Government to provide Rs 300 crore to organise 60,000 pulse and oilseed villages and provide integrated intervention of watershed and related programme.
• Repayment of loan by farmers extended by six months to June 30, 2010 in view of drought and floods in some part of the country, says FM.
• Interest subvention for timely repayment of crop loans raised from one per cent to two per cent, bringing the effective rate of interest to five per cent.
Source: http://www.timesnow.tv/Pranab-presents-budget-prunes-tax-rates/articleshow/4339395.cms

e-Filing Process (TAX)

July 13, 2009

E-Filing Tax

  1. Select appropriate type of Return Form
  2. Download Return Preparation Software for selected Return Form
  3. Fill your return offline and generate a XML file.
  4. Register and create a user id/password
  5. Login and click on relevant form on left panel and select “Submit Return”
  6. Browse to select XML file and click on “Upload” button
  7. On successful upload acknowledgement details would be displayed. Click on “Print” to generate printout of acknowledgement/ITR-V Form.

Click here to know more

Source: Income Tax Department, India.

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