Union Budget

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

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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%.

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Filed under: Companies, Top News, Income Tax, Minimum Alternate Tax, Policy Accounting, Law and Taxation, Union Budget

Budget gives New Pension System a boost

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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.

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Filed under: Economy+Policy, Quick News, New Pension System, PFRDA, Union Budget

Mini-Budget 2009-10 for the real estate industry

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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.
 

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Filed under: Economy+Policy, Infrastructure & Construction, Real Estate, Top News, 2009-10, Economy Outlook, Food Processing, Pranab Mukherjee

KPMG India’s Budget highlights

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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.
 

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Filed under: Economy+Policy, Quick News, 2009-10, Cenvat, Income Tax, KPMG, Tax, Union Budget

Highlights of the Union Budget 2009-10: Part Two

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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

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Filed under: Economy+Policy, Quick News, 2009-10, Economy Number Speak, Fiscal Deficit, Pranab Mukherjee, Union Budget

India’s Union Budget 2009-10: First Impressions

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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.
 

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Filed under: Economy+Policy, Top News, Fiscal Deficit, India, Industries Outlook, Pranab Mukherjee, Union Budget