Union Budget 2010: Indian Budget Highlights

New Delhi: A further relief for individual Tax payers, increased allocation for welfare schemes, Re 1 per litre excise duty hike on petrol and diesel were among the key features of the Union Budget 2010-11, presented in Parliament on Friday by Finance Minister Pranab Mukherjee. The minister said fiscal deficit would be brought down to 5.5 percent next fiscal from 6.9 percent in 2009-10.

Finance Minister Pranab Mukherjee Friday allocated Rs 22,300 crore (Rs 223 billion/$4.82 billion) for the health sector in his 2010-11 budget, an increase of over Rs 2,700 crore over the previous. The minister said the country was set to conduct a national health survey next fiscal and this would benefit in more than one way. Mukherjee said he was proposing to allocate Rs.22,300 crore as health expenditure as against Rs 19,534 crore in 2009-10.

Budget Highlights:

Personal Income Tax

Personal Income Tax slabs widened

Income up to Rs 1.6 lakh -- NIL

Above Rs 1.6 lakh to 5 lakh -- 10%

Above Rs 5 lakh to 8 lakh -- 20%

Above Rs 8 lakh -- 30%

Deduction of Rs 20,000 in long term infrastructure bonds

Contribution under central scheme to be included for Health Insurance exemption

Income Tax department ready with Saral-2 form for salaried tax-payers

2000 Income Tax Returns daily

Two more centres for tax filing

Income tax centres in Pune and Cochin -- Single window system to address grievances

Four more cities to get this system

Revamp needed of internal working system

System to tackle tax evasion and get black money abroad

Other Taxes

Minimum Alternative Tax hiked from 15% to 18%

Corporate Surcharge down from 10% to 7.5%

Service taxes unchanged

Revenue loss from direct taxes to be Rs 26,000 crore

Research and Development deduction hiked

Exemptions for two-star and above hotels anywhere in the country

5% tax on crude petrol and 7.5% on diesel

Excise duty hiked on tobacco

Partial excise on cement, cars