• Non tax revenue receipts are likely to be better
• Total estimated expenditure for 2009-10 is Rs 10 lakh crore
• Fiscal deficit seen at 6.8% in FY10
• To eliminate tax distortion
• Increasing automation in direct tax collection
• Federal Tax/ GDP ratio is 11.5%
• TO INTRODUCE GST BY APRIL 1, 2010
• To release new direct tax code in 45 days
• FBT to be abolished
• To pursue structural changes in Direct Tax
• New direct tax code to be released in 45 days
• To finalise New Direct Tax Code in House winter session
• State finance ministers agreed on GST basic structure
• Tax rates can be lower if tax base is higher.
• No change in corporate tax FR10.
• FY10 non-plan expenditure 6.97 trln rupees
• Senior citizen income tax limit hiked by 15,000 rupee/yr.
• Women income tax limit up 10,000 rupee to 190,000 rupee.
• Senior citizens IT exemption hiked to 240,000 rupees.
• IT exemption limit raised to 190,000 rupees for women.
• IT exemption hiked to 160,000 rupees for others.
• MAT rate to be increased to 15% vs 10% of book profit
• To remove surcharge of 10% on personal income tax
• Commodity transaction tax abolished
• Tax holiday extended for commercial production of natural gas
• Political funding will get 100% tax deduction
• National Pension Scheme exempted from STT
• MAT reduced to 15% of book profits, MAT tax credit increased from 7
years to 10 years
• Dividend under New Pension Scheme to get tax exemption
• New Pension Scheme investment not to attract STT
• Alternate dispute redressal mechanism for Tax disputes.
• Investment boost needs timely Tax disputes resolution.
• Donation to electoral trust to be 100% exempt for donor.
• 100% exemption for donations to electoral trust
• Anonymous donations – grant relief 5% of total income or Rs 1,00,000
whichever is higher
• Tax holiday on commercial production of mineral oil and natural gas on NELP
VII
• 5% Custom duty on STBs
• Custom duty reduced on LCD panels from 10% to 5%
• Life saving drugs, including breast cancer, custom duty reduced to
5% from 10%
• Life saving devices on heart contidion exempted from custom duty
• Custom duty on silver, excluding jewellery, hiked by Rs 500/ kh to Rs 1,000/
kg
• Life saving devices on heart condition exempted from custom duty
• To extend Customs exemption to some more EoUs
• Cuts customs duty on wind power equipment by 2.5%
• To reintroduce CVD exemption on parts of mobile phones.
• Rough corals exempted from Customs duty.
• Customs duty on windmill inputs cut to 5% vs 7.5%.
• Customs duty on life saving drugs cut to 5% from 10%.