Union Budget Archives - indiabusinessview

Corporate Income Tax: small benefits, but SEZs dealt a MAT blow

March 1, 2011August 20, 2014Editor

The Special Economic Zone tax bonanza will end, if the Budget proposals pass in their current form. Barring this, the Budget does not have any nasty surprises for companies.

Highlights:
The corporate surcharge has been lowered from 7.5% to 5%. That reduces the effective corporate tax rate from 33.2% to 32.4%, which is a nice, even if small, relief for Indian companies. The new rate will be 30% plus a 5% surcharge, which works out to 31.5%, and after adding the education cess of 3%, it works out to 32.4%.

Budget gives New Pension System a boost

February 28, 2011August 20, 2014Editor

The Budget 2011-12 has made the New Pension System more attractive. It has made two rule changes which will help both individuals and their employers. The NPS is the pension system applicable to new government employees and is also open to all citizens, to save for their retirement, and is run as per the regulations of the Pension Fund Regulatory and Development Authority.

Individual Income Tax: loose change for the salaried, hurrah for the elders

February 28, 2011August 20, 2014Editor

The government did not disappoint on expectations that it would increase the tax exemption limit for individuals. But it did nothing very dramatic on this front.

Mini-Budget 2009-10 for the real estate industry

July 27, 2009August 20, 2014Editor

The Finance Minister Pranab Mukherjee has proposed amendments to the Budget. It is customary for the FM to take in suggestions from various sides and introduce any necessary amendments. The FM has said that the priority was to provide a stimulus to economic activity.

KPMG India’s Budget highlights

July 12, 2009August 20, 2014Editor

KPMG India has analysed the implications of the budget in two parts. The report that talks about the Budget Highlights says in a foreword it is reassured by the government’s stand reiterating a commitment to bring in GST by April 2010. It also talks about issues like the new direct tax code, setting up of an alternative dispute resolution mechanism and empowering the Central Board of Direct Taxes to formulate safe harbour rules for transfer pricing in international transactions.

Budget 2009-10: Impact on Industry

July 8, 2009August 20, 2014Editor

Income Tax
This was a big disappointment to those expecting a bagful of goodies from the Indian government, that the Union Budget 2009-10 would cut dividend distribution tax, corporate tax rates will be cut and so on. There was no change in the corporate tax rate.

Individuals and the Budget: No major tax reliefs, no major pain

July 7, 2009August 20, 2014Editor

There was little to cheer for the individual tax payer in the 2009-10 Union Budget. The view perhaps is that the burden on him has been lowered substantially in the past few years. Hence, there is no reason to do a lot this year.

Highlights of the Union Budget 2009-10: Part Two

July 6, 2009August 20, 2014Editor

India’s tax-gdp ratio has improved from 9.2% in 2003-04 to 11.5% in 2008-09. The government wishes to simplify the tax structure. A new direct tax code will be released for public comments within 45 days and the new code will be finalised during the winter session of parliament. A Goods and Services Tax to be introduced from April 2010, but will comprise of a Central GST and a State GST.

Direct Taxes

Individual

Highlights of the Union Budget 2009-10: Part One

July 6, 2009August 20, 2014Editor

These are some of the highlights from the speech given by the Finance Minister Pranab Mukherjee, presenting the Budget in parliament. Part One deals with the state of the economy and key policy announcements while the second part will deal with tax proposals.

India’s Union Budget 2009-10: First Impressions

July 6, 2009August 20, 2014Editor

Overall Impact
The Union Budget 2009-10, as Pranab Mukherjee mentioned, is one of continuity. No major new schemes. No major tax changes. No change in the thinking of the government with respect to the fiscal deficit. No major reforms announced in the Budget, either. The initial impression one gets is that the government is hoping that the external environment will improve, domestic demand will pick up and lift the economy out the trough.