Budget 2010

* No hikes in passenger fares and freight tariff. 52 new train services to meet increasing demand of passengers, increase in frequency of 12 train services, extension of 21 trains and introduction of some special trains. Railways will not be privatized, but private sector participation welcomed through PPP route. A Special Task Force to clear proposals for investments within 100 days to be set up Full Article

There will be no increase in the passenger fares of any class or category of trains. Freight tariffs will also remain the same for 2010-11. Service charges for e-tickets and freight charges for food-grains will be reduced. This was announced by the Minister of Railways, Ms. Mamata Banerjee in Parliament today while presenting Railway Budget for the new financial year. Full Article

Personal income tax exemption limit should be further increased by Rs 50000 and slab limits should be revised accordingly. Currently, the threshold tax exemption limit for all assessees - for women is Rs 1,90,000, for senior citizen is Rs 2,40,000 and for others is Rs 1,60,000. Full Article

What is evident in the CSO data for GDP growth and fiscal deficit forecast for the current year, it appears certain fiscal deficit management and measures to push growth beyond 7% will be on top of the agenda. This could mean policy makers shall take a hard look at concessions, an impact thereof on the macroeconomy and of course, strategies for greater tax revenue mobilization. Full Article

Every domestic company is liable to pay a Dividend Distribution Tax @15% on the amount declared, distributed or paid by such company by way of dividends. The effective rate of tax works out to16.995%. The proposed Direct-tax Code also contains similar provision. The only exception is when the dividend is received by a domestic company from its subsidiary. Full Article

We would recommend a separate limit for deductions under Section 80C for long-term saving instruments such as life insurance. Currently, the deduction under Section 80C also includes short-term saving instruments such as mutual funds and fixed deposits. Life insurance and pensions are the only segments of financial services that address the needs of individuals in the long term. Full Article

Introduction of the concept of advance pricing arrangements (APAs) in the tax statute is regularly been in the Budget wish-list of multinational enterprises since 2001, when the transfer pricing legislation was enacted, APAs are essentially an advance ruling by which tax authorities agree upfront to the pricing of goods and services between the related parties. This ruling becomes binding on the tax authorities and the taxpayer. Full Article

FIEO said that sectors like tobacco, man-made yarns, tea and coffee have shown growth due to stimulus provided by the government and 'in case of abrupt withdrawal of stimulus these sectors may again enter into negative territory'. In the wake of the contraction in exports, the government had provided incentives like two per cent interest subsidy, higher duty drawback and refund of services tax in 19 categories of services. Full Article