With more than 90 million Indians already over the age of 60 and another 110 million likely to join this group by 2025, it is clear India has the beginning of an old-age crisis.
Just the 24 million employed directly and indirectly (school teachers, for instance) by the government – of the total work force of around 450 million – will be able to finance their retirement as they get half their last salary as a lifelong pension.
Except for an increase in the MAT rate and a reduction in corporate surcharge, the finance minister eschewed making any major change in corporate tax proposals, an indication of the coming overhaul of the direct taxes regime.
With the 3% increase in the MAT rate to 18%, leading infrastructure, telecom and IT companies, including Reliance Industries, Bharti Airtel, TCS, will see their tax payout rise by 20% in the next fiscal.
While substantial reduction in personal income tax and extension of interest subvention can drive demand, extension of 80IB (10) benefit for another year gives comfort for delayed eligible projects.
Real Estate sector which is slowly coming out of the Mid 2008 slump, but has received good support from Union Budget 2010-11. While the budget has encouraged affordable housing below Rs 20 lakhs with 1% interest subvention for housing loan upto 10 lakhs
FM sprang a pleasant surprise on personal i-t payers, lightening by Rs 20,600 the tax burden for those with an annual income of Rs 5 lakh and a saving of as much as Rs 51,500 for individuals earning Rs 8 lakh.
For individuals hurting from a sharp spike in prices, the concession should compensate for the anticipated increase in the cost of living after he raised the excise duty rate, expanded the ambit of service tax, and increased the prices of petroleum products.
It is proposed that no disallowance of the expenditure which is subject to TDS provision will be made, if after deduction of tax during the previous year, tax has been paid on or before the due date of filing of return of income. This is effective from Assessment Year 2010-11 onwards
The rate of interest on late deposit of tax deducted has been increased from 12% p.a. to 18% p.a. with effect from July 1, 2010.
It is now proposed that receipts from activities such as “Carrying on of trade, commerce or business or rendering of service in relation thereto for advancement of any other object of general public utility was hitherto not considered as charitable purpose” will be considered as charitable purpose so long if total receipts ….
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