Friday, February 26, 2010

Budget 2010 : Highlights in Simple language

Custom duty on crude oil back to 5% : Negative for Reliance Industries
Enhance tax audit limits for professionals to Rs 15 lakh : Negative for Auditors
To partially roll back central excise duty : Negative for Industry
Excise duty on large cars, SUVs raised to 22%, up 2% : Negative for Automobiles
Sops for real estate, housing projects extended by a year : Positive for Realestate stocks like Unitech, DLF
Surcharge on domestic cos reduced to 7.5% from 10%, : Positive
MAT increased from 15% to 18% : Negative
Income tax slabs revised : Highly positive.
No tax for income upto 1.6 lakh.
For income between 1.6 lakh - 5 lakh tax liability 10%. (old slab was Rs 1.6 to 3 lakh)
For income between 5 lakh - 8 lakh 20%. (old slab was Rs 3-5 lakh)
For income above 8 lakh 30% (old slab was Rs 5 lakh +)
Additional investment of 20K in infra bonds over and above Rs 1 lakh in 80C.

RBI is considering new bank licenses to promoters in the private sector and also NBFCs : Positive for companies like Reliance Capital, Indiabull Fin Service, Cholamandalam, Sundaram finance, Shriram group, IDFC, SIDBI, EXIM Bank etc.
Govt to provide subsidy in cash instead of bonds for fertiliser, oil : Highly postive for Fertilizer stocks + Oil Marketing companies
Net market borrowing 2010-11 at Rs 345010 cr : No comments
Revised fiscal deficit targets for 2009-10 at 6.9%
5.5% fiscal deficit, rolling targets of fiscal defict at 4.8% in 2011-12 and 4.1% in 2012-13
15% increase in plan expenditure and 6% in non-plan expenditure
Advance tax receipts expected at Rs 746651 cr; Net tax revenue receipts at Rs 14118 cr
Defence allocation raised to Rs 147344 cr, Rs 60000 cr allocated for defence expenditure
UID authority given Rs 1900 cr
Proposes to increase subvention to 5% in repayment of farmer loans : Positive for Farmers, Agriculture
Social sector spending at Rs 1.38 tn for FY11
Rs 2600 cr allocated to minority ministry
National Social Security fund allocation at Rs 1000 cr
Extends 1% interest subsidy scheme for affordable housing to March 2011 : Positive for Real estate companies
To create 50 cr skilled workers by 2022
Rs 1200 cr for drought mitigation in Bundelkhand region
Rs 100 cr for financial inclusion fund; Allocation for Bharat Nirman at Rs 48000 cr
Allocation for urban development up 75% from Rs 3062 cr to Rs 5400 cr
Allocation to NREGA increased to Rs 40100 cr
Govt allocates Rs 22300 cr to healthcare : Positive for Hospitals
35% of development funds to be invested in rural India
Govt allocates Rs 31,036 cr for school education and Rs 3675 cr for elementary education
Govt to raise Rs 25000 cr through disinvestment : No other go. To match up with deficit they need to do this.Govt is ready with draft food security bill to be placed for public debate

No comments:

Post a Comment