EXPECTATIONS FROM BUDGET 09-10 !!!
Jul 01, 2009
The time has almost come and all of us are eagerly waiting as to what the budget 09-10 has in store for us. We surely want the Government to be easy on our pockets and help us increase our financial condition. I have been reading a lot particularly on www.ndtv.com and found some acts that this budget might portray.
Sources to NDTV speculate that the Finance Minister Pranab Mukherjee could announce sweeping tax cuts for corporate and individuals when he presents the budget. The proposals to cut corporate tax from 30 per cent to 25 per cent and increasing personal income tax exemption limit from Rs.1.5 lakh at present to Rs.2.5 lakh or more can be a major step put forward by the Government.
However, the Government is weighing between the options of a cut in corporate tax or reviving the concept of investment allowance. The concept of investment allowance is aimed at giving a boost to the manufacturing sector. Under this scheme, if a company decides to deploy additional cash for expanding capacity on ‘generating employment’, the amount will be deductible from the taxable income of the company.
BMR Advisors Managing Partner Mukesh Butani also feels that the investment allowance will give a boost to the manufacturing sector. The concept of “investment allowance” was a policy of the government during the 1980s when the government wanted to encourage companies to invest in expanding capacity. With the pressure on growth, the government is hoping that the tax break could help to revive growth.
For Individuals it is to be believed that tax cuts will enhance consumer spending and it would improve tax compliance.
Among other sectors Gas production is also expected to get special tax benefits which will bring it at par with crude oil production. The hospitality sector could be given the industry status, which can help attract more investments for the sector.
I hope the finance minister Pranab Mukherjee turns the expectations into reality on the 6th of July to ensure a financially powerful India.
For more news, views and updates do take a look at the link below
http://profit.ndtv.com/Budget/BudgetHome.aspx
Posted by nikhil | Tags: Announcement
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July 1st, 2009 at 2:24 am
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July 5th, 2009 at 11:29 am
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January 5th, 2010 at 10:16 am
great work… nice blog
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