Auto
* Increase in excise duty by 2%-4%.
* Increased allocation under National Urban Renewal Mission for buses
* No increase in excise duties for large cars
Banking and financial services
* Interest subventions for pre-shipment credit and short-term crop loans expected to be withdrawn.
* To qualify for tax benefits under Sec.80C on Fixed deposits lock in period to be reduced from five to three years.
* Raising the ceiling of TDS on interest income from fixed deposits.
* Allowing banks to raise tax-free infrastructure funds.
* Tax breaks to housing finance and infrastructure-lending companies.
* Housing loans below 30 Lakh rupees to be considered as "priority sector" lending.
* Refinancing from India Infrastructure Finance Co Ltd (IIFCL) for up to 60% of commercial bank loans for PPP (public private partnership) projects in critical sectors is expected to continue.
* Increase FDI in insurance sector from 26% to 49%.
* Recapitalisation of PSU banks with lower tier-1 capital.
Cement
* Roll back of excise duty cuts of around 2%-4%.
• Reduction in import duty on coal
Construction
* An increased outlay in government spending in infrastructure, especially for roads and urban projects
* Details of refinancing for India Infrastructure Finance Company Ltd (IIFCL) funding
* Clarity on minimum alternate tax provisions under a new Direct Tax code, to be implemented in FY12
* More financial availability for infrastructure projects
* National project status for state government projects
Engineering and capital goods
* Increase in import duty on foreign power equipments like turbines, boilers and generators.
* Rollback of excise duty concession given in the stimulus package to manufacturers by minimum 2%.
FMCG
* Raise excise duty on cigarettes by 5%-8%
* Excise duty cuts on products except food items may be reversed by 2-3%
* Rural initiatives for income generation are expected to continue
* MAT (Minimum Alternative Tax) rates can be increased, as a step forward towards the Direct tax Code.
.
Real estate
* Hotels to be included under Sec 80 IA (Infrastructure status) for all hotels across India and across all categories
* Greater thrust on PPP projects in housing.
* Increase in allotment to the Rajiv Gandhi Awas Yojana (slum rehabilitation programme)
* Increasing tax breaks provided to housing finance and infrastructure lending companies.
* Re-introduction of tax holiday for housing projects under Sec 80 IB (10)
* Increase in income tax deduction under Sec 80 C on home loan principal re-payment from Rs 0.1 million to Rs 0.2-0.3 million.
Information technology
* Extension of tax benefits for units in Software Technology Parks of India beyond March 2011.
* Spending on education through Sarv Shiksha Abhiyan to be increased.
* Abolishing MAT in STPI units
* Reduction in excise duty on electronic and IT goods from 10% to 8%.
Media
* Increase in foreign investment limits in direct-to-home (DTH), cable, FM radio and news broadcasting services.
* Raise the rate of service tax to 10%.
* Customs duty to be levied on newsprint.
* Tax holiday for the capital intensive business such as Gaming, Animation, VFX.
* Removal of custom duty on set-up boxes.
Pharmaceuticals
* The 150% weighted deduction enjoyed by in-house R&D expenses should be extended to expenses on outsourced studies such as clinical trials and specific laboratory studies. The weighted deduction should also be raised to 200%.
* State excise duty on certain formulations should be cut to 8% from 16%.
* Central excise duty on drugs to be restored to 8% from 4%.
* Allocation for the National Rural Health Mission should be increased significantly.
* Eliminating excise duties on all essential drugs.
* Extension of tax exemption for export oriented units and clarity on the new direct tax code on special economic zones.
Power
* Continuation of income tax exemption for mega power generation projects.
* Increasing the allocation towards the government-led electrical infrastructure augmentation schemes namely Rajeev Gandhi Grameen Viyuktikaran Yojana and Restructured Acclerated Power Development and Reforms Programme.
* Reduction of import duty on thermal coal.
Retail
* Allowing foreign investment in multi-brand retail.
* Industry status to retail.
Metals and mining
* Increase in excise duty cut to 10% from 8%
* No change in customs duty structure
* Increase in iron ore exports duty by 5%
* Removing the 5% import duty on stainless steel and alloy steel scraps
Chemicals & fertilisers
* Increase the price DAP between 8%-10%
* Tax holiday for a period of 10 years should be extended to all new fertiliser projects
* Excise duty on fuel oil used for fertiliser manufacturing should be abolished.
Oil & gas
* Infrastructure status for Oil and Gas to promote investments with tax sops.
* Tax benefits for city gas distribution and extension in tax holiday for new refineries
* Declared goods status to be given to natural gas.
* Abolishing service tax on exploration and production activities.
Telecom
* Unification of tax regime from current differential taxation methods
* Reduction in license fee to 6%
* Tax holiday for mergers and acquisition activities of telecom companies to be extended till April 2010
* Clarity on 3G Auction timeline
* Increase in service tax by 200 basis points
* Government to use Universal Service Obligation funds for rural and broadband penetration
* Increase in Minimum Alternate Tax from the present 16.5%.
Read the complete analysis of the Union Budget 2010-2011 at www.stockinvest.in
* Increase in excise duty by 2%-4%.
* Increased allocation under National Urban Renewal Mission for buses
* No increase in excise duties for large cars
Banking and financial services
* Interest subventions for pre-shipment credit and short-term crop loans expected to be withdrawn.
* To qualify for tax benefits under Sec.80C on Fixed deposits lock in period to be reduced from five to three years.
* Raising the ceiling of TDS on interest income from fixed deposits.
* Allowing banks to raise tax-free infrastructure funds.
* Tax breaks to housing finance and infrastructure-lending companies.
* Housing loans below 30 Lakh rupees to be considered as "priority sector" lending.
* Refinancing from India Infrastructure Finance Co Ltd (IIFCL) for up to 60% of commercial bank loans for PPP (public private partnership) projects in critical sectors is expected to continue.
* Increase FDI in insurance sector from 26% to 49%.
* Recapitalisation of PSU banks with lower tier-1 capital.
Cement
* Roll back of excise duty cuts of around 2%-4%.
• Reduction in import duty on coal
Construction
* An increased outlay in government spending in infrastructure, especially for roads and urban projects
* Details of refinancing for India Infrastructure Finance Company Ltd (IIFCL) funding
* Clarity on minimum alternate tax provisions under a new Direct Tax code, to be implemented in FY12
* More financial availability for infrastructure projects
* National project status for state government projects
Engineering and capital goods
* Increase in import duty on foreign power equipments like turbines, boilers and generators.
* Rollback of excise duty concession given in the stimulus package to manufacturers by minimum 2%.
FMCG
* Raise excise duty on cigarettes by 5%-8%
* Excise duty cuts on products except food items may be reversed by 2-3%
* Rural initiatives for income generation are expected to continue
* MAT (Minimum Alternative Tax) rates can be increased, as a step forward towards the Direct tax Code.
.
Real estate
* Hotels to be included under Sec 80 IA (Infrastructure status) for all hotels across India and across all categories
* Greater thrust on PPP projects in housing.
* Increase in allotment to the Rajiv Gandhi Awas Yojana (slum rehabilitation programme)
* Increasing tax breaks provided to housing finance and infrastructure lending companies.
* Re-introduction of tax holiday for housing projects under Sec 80 IB (10)
* Increase in income tax deduction under Sec 80 C on home loan principal re-payment from Rs 0.1 million to Rs 0.2-0.3 million.
Information technology
* Extension of tax benefits for units in Software Technology Parks of India beyond March 2011.
* Spending on education through Sarv Shiksha Abhiyan to be increased.
* Abolishing MAT in STPI units
* Reduction in excise duty on electronic and IT goods from 10% to 8%.
Media
* Increase in foreign investment limits in direct-to-home (DTH), cable, FM radio and news broadcasting services.
* Raise the rate of service tax to 10%.
* Customs duty to be levied on newsprint.
* Tax holiday for the capital intensive business such as Gaming, Animation, VFX.
* Removal of custom duty on set-up boxes.
Pharmaceuticals
* The 150% weighted deduction enjoyed by in-house R&D expenses should be extended to expenses on outsourced studies such as clinical trials and specific laboratory studies. The weighted deduction should also be raised to 200%.
* State excise duty on certain formulations should be cut to 8% from 16%.
* Central excise duty on drugs to be restored to 8% from 4%.
* Allocation for the National Rural Health Mission should be increased significantly.
* Eliminating excise duties on all essential drugs.
* Extension of tax exemption for export oriented units and clarity on the new direct tax code on special economic zones.
Power
* Continuation of income tax exemption for mega power generation projects.
* Increasing the allocation towards the government-led electrical infrastructure augmentation schemes namely Rajeev Gandhi Grameen Viyuktikaran Yojana and Restructured Acclerated Power Development and Reforms Programme.
* Reduction of import duty on thermal coal.
Retail
* Allowing foreign investment in multi-brand retail.
* Industry status to retail.
Metals and mining
* Increase in excise duty cut to 10% from 8%
* No change in customs duty structure
* Increase in iron ore exports duty by 5%
* Removing the 5% import duty on stainless steel and alloy steel scraps
Chemicals & fertilisers
* Increase the price DAP between 8%-10%
* Tax holiday for a period of 10 years should be extended to all new fertiliser projects
* Excise duty on fuel oil used for fertiliser manufacturing should be abolished.
Oil & gas
* Infrastructure status for Oil and Gas to promote investments with tax sops.
* Tax benefits for city gas distribution and extension in tax holiday for new refineries
* Declared goods status to be given to natural gas.
* Abolishing service tax on exploration and production activities.
Telecom
* Unification of tax regime from current differential taxation methods
* Reduction in license fee to 6%
* Tax holiday for mergers and acquisition activities of telecom companies to be extended till April 2010
* Clarity on 3G Auction timeline
* Increase in service tax by 200 basis points
* Government to use Universal Service Obligation funds for rural and broadband penetration
* Increase in Minimum Alternate Tax from the present 16.5%.
Read the complete analysis of the Union Budget 2010-2011 at www.stockinvest.in
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