Finance Bill 2009:Union budget 2009 india, Finance ministry, Ministry of finance
The Finance Bill 2009 which gives legislative effect to the measures announced by the Minister for Finance in his Budget statement on 7 April 2009 was published on 7 May 2009.
Union Budget 2009-10 : Highlights
Budget speech completed. Finance Bill-II 2009 introduced.
Customs duty on bio-diesel reduced.
Silver to cost more.
Tax to be levied on Law Firms.
Textile units to receive tax holiday.
LCD TVs to cost less. Custom duty on LCD TVs cut from 10% to 5%.
Set-Top Boxes to cost more. Customs duty of 5% on set-top boxes.
To extend tax holiday for commercial production of mineral oil and natural gas.
Enhance budgetary support by Rs 40,000 cr.
Fringe Benefit Tax abolished.
Commodity Transaction Tax abolished.
Personal income tax exemption hiked by Rs 10,000.
No surcharge of 10% on personal income tax.
Centralised processing center at Bengalooru to streamline taxation.
No change in corporate tax.
Increase in exemption slab for senior citizens by Rs 15,000.
Fiscal deficit at 6.8% of GDP.
Proposes Rs 500 cr for rehabilation of displaced persons of northern and eastern areas of Sri Lanka.
Aila Relief proposed at Rs 1,000 crore.
Increased allocation for higher education. New IITs to be set up. Rs 2,113 cr for IITs and NITs.
Rs 25 cr each for AMU campuses in Murshidabad and Mallapuram.
Defence outlay goes up. One lakh dwelling units for paramilitary forces personnel to be constructed.
Allowances to para-military forces at par with defence forces.
One rank, one pension for ex-servicemen.
Allocation for Commonwealth Games to be raised to Rs 3472 crore
Online job exchange to be started with private partnership.
Unique ID plan to roll out in 12-18 months.
Top people from private sector to be given responsibility of vital national projects.
Interest subsidy for home loans up to Rs 1 lakh.
All BPL families to be bought under one smart card program.
50% of all rural women to be brought into self-help group programmes.
Rural mega clusters in Bengal and Rajasthan.
To add handloom clusters in West Bengal and Tamil Nadu.
75% hike in irrigation projects.
Rural Housing: Allocation to Indira Awaas Yojna hiked by 63% to Rs 8,883 cr. Rs 7000 crores for rural electrification scheme.
Rs 31,100 crore allocation for NREGA. NREGA gave employment opportunities to more than 4.479 cr households.
Rs 100 cr one-time grant to expand banks in non-banking areas.
Banks, insurance to stay with Govt. Banking network to be expanded.
Expert panel to look into petroleum product pricing. Domestic oil prices must be in sync with global prices.
'Aam Admi' is the focus of all our programmes and schemes: Pranab
Tax system should be such that it shold encourage voluntary compliance.
Income Tax forms to be made user-friendly. Saral-II forms to simplify taxation process.
Export Credit Guarantee scheme extended till March 2010.
Stimulus package to print media extended till December 31.
Farmers loan interest to come down to 6%. Interest subvention scheme for farm loans to be manitained.
Additional budget allocation for farmers.
IIFCL will refinance 60% of commercial bank loans in PPP. IIFCL to look at infrastructure needs.
Mumbai flood management allocation hiked to Rs 500 cr.
87% rise in urban renewal mission. Housing allocation hiked.
Fiscal stimulus at 3.5% of GDP
Allocation for NHAI up 23%
Trade in goods and services doubled in 2008
Job creation hit due to economic slowdown: Pranab
Govt took 3 stimulus packages so far. Two worst quarters of the global economic crisis is now behind us: Pranab
One budget can not solve all problems: Pranab
Foreign capital inflow is important
Increased focus on growth and encourage nation's development
Sustain growth rate of 9% for a longer period. Farm sector growth at 4%
Union Finance Minsiter begins his speech. This is Pranab Mukherjee's 4th budget.
Cabinet approves Union Budget.
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Kind Attn: Mr. Finance minister of INDIA
Dear sir,
Your dept is inviting suggestions in the proposed IT changes for direct tax effective from April-2011.
Your opinion is if the taxes are less and the procedure are simple it will result in the increased tax payers. The answer to this is a definite YES and NO. Yes because the intention is good. NO because the procedure will be less modified than the general public requirement/ demand.
WHY?
Once my friend, who is a C.A came to my house for dinner. While discussing some points during the course of talk, one of our neighborhood aged aunty aged (uneducated but wealthy landowner ) asked my friend Gopal;
Aunty: Ahre Gopal , I do ask my husband to pay income taxes as it is not good to evade taxes and he also agrees to that , but still he is scolding me “are you MAD, if you enter once in that area, then you will loss all mental piece”. Why it is so?.
Gopal: Auntyji, what is your profession and how much is your income ?.
Aunty: Profession is agriculture mostly, but you see my husband also do the grain purchase and selling in the market during the harvest time and also he is selling the seeds / manure etc. Our income is 6 to 9 lacs on some years and 2 to 3 lacs on other years. It all depends on the rain and the harvest. Though our income is not regular, I do feel that we have to pay taxes. Then how we can do this.?.
Gopal: Auntyji , then you have to maintain some record that I will tell you and then you have to pay the taxes with the details.
Aunty: Ahre bhai, record / wicord keeping is not possible by us. These are all useless jobs( faultu kam hai) Can’t we pay the taxes simply saying our income for this year is this much?.
Gopal: No auntyji, you have to keep some record and proof.
Aunty: We do have some amount running in lacs and we want to invest it in some properties openly without concealing any information. Is there anyway that we can do this.?.
Gopal: Have you paid any taxes for this?. If not then it will be termed as black money.
Aunty: Then how to make it white?.
Gopal: There are some short cut methods through which we can do this.
Aunty: Is it allowed in the rule?.
Gopal: No aunty, but there is no other way.
Aunty: (exhausted) ahre bhai, then your uncle is right. This is really problematic.
Gopal: Yes problematic , but it is the law and we have to follow it.
Aunty; ( irritated) Ahre bhai Can’t you make simple rule?. What you expect from us?. Leaving the work and manipulating the records and showing it to the income tax dept?. Even then , you will find out lot of mistakes in that and demand this / that or bribes to settle things. I demand that you should make simple rule , so that Cow tendering / Gobar collecting ladies like me should understand the income tax rules. If the law makers don’t have wisdom ( akal ) for this , then they should drown themselves and die.( chuli per pani mey doob marna chaiye))As they are not even good for cattle rendering and are a burden to the nation and burden to the earth.
Gopal: Ahre auntyji, then you don’t pay the tax and say all the income are from agriculture.
Aunty: You educated people are promoting un ethics and dishonesty. ( tum pada lika log kameenapan ko badava dhe rehe ho). Then you are saying mere Bharat Mahan. Wah Bhai only god can save our country.
My opinion: 1) If the income tax dept don’t ask for details and simply accept the income statement of the individual , then there will be lot of tax payers and lot of tax will be paid. People should be allowed to pay the taxes on making simple statements. If they can show the proof , well then they may pay the normal taxes. If they can’t give the proof / record of income , then they should pay 30% more than the normal tax.
2) You ( IT people ) may argue that this will pave the way for black money to become white and this should not be allowed. Then there will be lot of people, traders, merchants and other people , good people who want to pay the tax, but could not do that due to the procedural hurdles and lack of proof of income etc will stay out of the tax fold as there is no way to enter in to this honestly. This will not help the nation except the authorities who are making more harm to our nation than the Pakistanis and Chinese.
3)Ordinary people are selling their house properties and they are not showing it out as the sum involved is much and they don’t want to pay the tax. Here also the center government should collect at least 10% of the sale value as tax from the seller. Once in five years people should be asked to file their movable and immovable properties statement. The tax department should scrutinize it and penalize heavily if some information regarding properties are willfully suppressed. The tax and property of the people should be regularized once in five years and people should be required to have the latest five year slab details only .
We should think in totality. We should not copy the foreigners simply. Then it will be like fitting truck tire in the Maruti car or fitting the maruthi car engine in the truck & is not a good idea.