Union Budget 2009-10: Pranab Increases IT Exemption Limit

July 27th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee Monday had a ready answer to the remarks by opposition leader Jaswant Singh last week that the income tax exemption in the budget was not enough to even buy a bottle of whiskey. "He should give up (whiskey) if he has not already given it up," Mukherjee told the Lok Sabha, the lower house of parliament, responding to Singh's remarks during the debate on the Finance Bill.

July 14th, 2009 WASHINGTON - A US South Asia expert suggests that the Indian budget would perhaps limit the country's ascension to a global economic force and could limit the value of India-US partnership for Washington. As Secretary of State Hillary Clinton has noted in advance of her trip to India, the US has an important stake in Indian success, writes Derek Scissors, research fellow in Asia Economic Policy at The Heritage Foundation.

July 6th, 2009 NEW DELHI - Highlights of the union budget for the current fiscal presented by Finance Minister Pranab Mukherjee in the Lok Sabha Monday: - No change in corporate tax rate - Income tax exemption limit for senior citizens increased by Rs.15,000, for women and others by 10,000 each - New indirect tax will be introduced in 45 days - Fringe benefit tax abolished - Goods and services tax (GST) will be introduced April 1, 2010 - An alternative dispute settlement mechanism to be set up to settle tax disputes - Lawyers brought under the ambit of service tax - Tax exemption on profits in the natural gas sector extended - Customs duty on LCD TVs reduced to 5 percent from 10 percent - Five percent customs tax imposed on set-top boxes - Rs.500 crore for the rehabilitation of displaced Sri Lankan Tamils and reconstruction activities in that country - Aligarh Muslim University campuses to be set up in Murshidabad in West Bengal and Malappuram in Kerala - Allocation for the minority affairs ministry raised to Rs.1,740 - Plan expenditure up 34 percent, non-plan spend up 37 percent - Total spending increased to Rs.10.2 lakh crore - Rs.420 crore for new IITs and NITs - Commonwealth Games allocated Rs.3,472 crore - National unique identification numbers to start rolling out in 12-18 months - Paramilitary forces such as CRPF to get 100,000 homes - Banking services in under-banked areas to be increased, scheme allocated Rs.100 crore - Agriculture debt waiver extended by six months - Outlay for national rural health mission increased by Rs.2,057 crore from the Rs.12,070 crore provided in the interim budget - Allocation towards National Rural Employment Guarantee Act increased by Rs.39,100 crore - Allocation for Bharat Nirman scheme increased by 45 percent - Rs.20,000 crore for rural housing - Rural electrification scheme to get Rs.7,000 crore more - Tax department to work on early introduction of Saral 2 forms - Stimulus for print media extended from June 13 to Dec 31 - Rs.1,000 crore to accelerate irrigation projects - Agriculture development fund increased from Rs.2.87 lakh crore to Rs.3.25 lakh crore - Market development assistance scheme for exporters increased by 148 percent to Rs.124 crore - Pre-shipment interest subvention set at 2 percent for textile exporters - Sufficient funds for infrastructure development - Allocation for national highways development stepped up by 23 percent - Allocation for urban poor schemes to be raised to Rs.39,730 crore - LNG infrastructure to be expanded - Allocation for Jawaharlal Nehru Urban Renewal Mission raised by 87 percent to Rs.12,887 crore

July 6th, 2009 NEW DELHI - In a bid to give a fillip to the current round of auction of hydrocarbon assets, Finance Minister Pranab Mukherjee Monday extended the tax exemption on profits in the natural gas sector. The ministry of petroleum and natural gas has been seeking tax holiday to the natural gas sector since last year, when the 2008 auction deadline had been postponed many times due to confusion over this issue.

July 6th, 2009 NEW DELHI - The allocation for the market development scheme for exporters has been increased 148 percent to Rs.124 crore, Finance Minister Pranab Mukherjee said while presenting the union budget for 2009-10 in the Lok Sabha Monday. Mukherjee has also extended the interest subvention for the textile industry from Sep 30, 2009 to March 31, 2010.

July 6th, 2009 MUMBAI - The budget has proved to be a letdown for the corporate sector and has not been very encouraging in view of the current economic scenario, according to noted city-based corporate tax consultant J.P. Purohit. "Even the raised exemption limit of Rs.10,000 in personal income tax is hardly any relief given the high prices in the markets, though the abolition of fringe benefit tax is a good step," Purohit observed.

July 6th, 2009 BANGALORE - Youngsters in India's IT hub Bangalore, who have been hugely affected by the global economic recession due to large scale job losses and lack of newer employment opportunities, have expressed mixed feelings over Monday's union budget. If young professionals have expressed happiness on the increase in the income tax exemption limit and end of fringe benefit tax, they are dissatisfied over the budget not having given a clear cut indication to end job losses and generation of employment opportunities.

July 6th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee Monday proposed to extend the scope of presumptive tax to all businesses with a turnover of up to Rs.40 lakh. "This will facilitate the business operations of all small tax payers and reduce their compliance burden, the finance minister told parliament after tabling the union budget for 2009-10.

July 6th, 2009 NEW DELHI - Donations to electoral trusts will be allowed a 100 percent deduction from the income of the donor for income tax purposes, Finance Minister Pranab Mukherjee announced here Monday in the union budget for 2009-10. The house will agree that it is desirable to bring about transparency in the funding of political parties in the country, Mukherjee said in his budget speech.

July 6th, 2009 NEW DELHI - Tax-paying individuals stand to benefit this fiscal. Finance Minister Pranab Mukherjee has eased their tax burden and provided relief for specific groups of people such as senior citizens, physically handicapped and women.

July 6th, 2009 The Union Budget 2009-10 presented by the Finance Minister of India, Pranab Mukherjee, proved to be a 'populist' one. The Finance Minister promised to halve the poverty by 2014 as he laid focus on employment, infrastructure and agriculture.

July 6th, 2009 Every Indian is eagerly awaiting the biggest Budget ever, amidst the slowing down economy. Finance Minister Pranab Mukherjee would present Union budget for this fiscal from 11 this morning.

July 6th, 2009 BANGALORE - Salaried residents of Bangalore have welcomed the proposed increase in income tax exemption limits for women and others by Rs.10,000 and scrapping of the fringe benefit tax (FBT). Senior citizens in this IT hub are also happy with an increase in their tax exemption limit by Rs.15,000.

July 6th, 2009 NEW DELHI - In keeping with the United Progressive Alliance (UPA) government's inclusive growth mantra, Finance Minister Pranab Mukherjee Monday announced a slew of schemes for the aam aadmi (common man). The major measures announced in his union budget for 2009-10 are: - Allocation towards National Rural Employment Guarantee Act increased by Rs.39,100 crore - Agriculture debt waiver extended by six months - Outlay for national rural health mission increased by Rs.2,057 crore from the Rs.12,070 crore provided in the interim budget - Allocation for Bharat Nirman scheme increased by 45 percent - Rs.20,000 crore for rural housing - Rural electrification scheme to get Rs.7,000 crore more - Agriculture development fund increased from Rs.2.87 lakh crore to Rs.3.25 lakh crore - Allocation for urban poor schemes to be raised to Rs.39,730 crore - LNG infrastructure to be expanded - National Housing Bank to get Rs.2,000 crore for rural housing funds - Higher education outlay increased by Rs.2,000 crore over interim budget - Income tax exemption limit for senior citizens increased by Rs.15,000, for women and others by 10,000 each - Duties on life saving drugs reduced - Allocation for the minority affairs ministry raised to Rs.1,740 crore - Banking services in under-banked areas to be increased, scheme allocated Rs.100 crore - Rs.1,000 crore to accelerate irrigation projects - Allocation for Jawaharlal Nehru National Urban Renewal Mission raised by 87 percent to Rs.12,887 crore

July 6th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee Monday proposed to increase the income tax exemption limit for senior citizens by Rs.15,000, for women and others by Rs.10,000 each, while keeping the corporate tax rate unchanged. The exemption limit will now be Rs.240,000 for senior citizens, Rs.190,000 for women and Rs.160,000 for others.