Weekly E-Magazine : Union Budget surprises the market on a positive note

Dear Kundapur Govardhana Kini, The Union Budget was released amidst a lot of expectations from the industry and has surprised the market on a positive note. We bring to you an exclusive and detailed analysis of the Union Budget 2010-11 and its key highlights.  Key highlights of Budget 2010-11 Rs 16,500 crore has been provided to ensure that Public Sector   Banks are able to attain a minimum 8% Tier-I capital by March 31, 2011 Rs 1,73,552 crore has been provided for infrastructure development,   which accounts for over 46% of the total plan allocation. Allocation for road transport has been increased by over 13% from Rs 17,520 crore to Rs 19,894 crore Plan allocation for the power sector excluding Rajiv Gandhi Grameen   Vidyutikaran Yojana (RGGVY) doubled from Rs 2,230 crore in 2009-10 to Rs 5,130 crore in 2010-11 The Plan and Non-Plan expenditures in BE 2010-11 are estimated at   Rs 3,73,092 crore and Rs 7,35,657 crore, respectively. While there is a 15% increase in Plan expenditure, the increase in Non-Plan expenditure is only 6% over the BE of the previous year Fiscal deficit for BE 2010-11 has been estimated at 5.5% of GDP, which   works out to Rs 3,81,408 crore  Direct Taxes Income tax slabs for individual taxpayers to be as follows   Income up to Rs 1.6 lakh - Nil Income above Rs 1.6 lakh and up to Rs 5 lakh - 10% Income above Rs 5 lakh and up to Rs 8 lakh - 20% Income above Rs 8 lakh - 30% Deduction of an additional amount of Rs 20,000 allowed, over and   above the existing limit of Rs 1 lakh on tax savings, for investment in long-term infrastructure bonds as notified by the Central Government Rate of minimum alternate tax (MAT) increased from the current rate   of 15% to 18% of book profits  Indirect Taxes Rate reduction in central excise duties to be partially rolled back and   the standard rate on all non-petroleum products enhanced from 8% to 10% ad valorem The specific rates of duty applicable to portland cement and cement   clinker has also been adjusted upwards proportionately. Similarly, the ad valorem component of excise duty on large cars, multi-utility vehicles and sports-utility vehicles has been increased by 2 percentage points to 22% The basic duty of 5% on crude petroleum, 7.5% on diesel and petrol   and 10% on other refined products has been restored. Central excise duty on petrol and diesel has been enhanced by Re 1 per litre each Read more.. Did you know : Now resolve your queries instantly by using Insta Help - A   self help tool