View of CA on union budget 2010-11

Sujay Nimbalkar has compiled these reviews of the union budget 2010-11 by different chartered Accountants of Belgaum.

CA. B.B.Chandargi
Chairman of Belgaum Branch of Institute of chartered Accountants

Income Tax
1.The increase in Slab rate will be benefiting the particularly the middle class Tax Payers in the Income range of Rs.3.00 Lakhs to Rs.8.00 Lakhs leading to a Savings of Rs. 50000 in tax.
2.Also the proposed weighted deduction of 200% on Research activities to will give a major boost to Technology & Industrial growth.
3.Farmers have been benefited as the effective rate of Interest now on will be 5 %
4.The Increase in Tax Audit limit for Business and Professionals will reduce the paper work as well as the Income tax procedures for Small & Medium enterprises.
5.Charitable Institutions can also carry out Non Charitable activities upto a limit of Rs. 10 Lakhs, this will mean better activities in the nature of public interest.
6.Companies subject to MAT will have to pay additional 5% i.e total 15% as Mat (Minimum Alternate Tax).

Excise Duty :Excise duty is not favorable for large car buyers
Introduction of few more services under the Service Tax net will boost the service tax revenue of the Govt but it is not a welcome by those service providers.
However the large amount of Fiscal Deficit of our economy is cause of concern.


CA. Sanjay D Shirguppe
Practicing chartered Accountant, Belgaum

The Basic Exemption Limit in case of Service should have been increased ( on the lines of increase in Income Tax Limit) to Rs.15 Lakhs from the present limit of Rs. 10 Lakhs thereby relieving the small service tax providers from the efforts of Registration under Service Tax rules and following the procedures thereon.
However the agricultural interest rate of 5 % to farmers is favourable.
The levy of additional duty of Re.1 per liter on Petrol and Diesel will indirectly lead to rise in the prices of other commodities and services resulting in increase in Inflation. Also I don’t see any steps taken by our Government to bring down the present inflation.

CA Vinay B
Practising Chartered Accountant Belgaum

Our BUDGET 2010, in the backdrop of rehabilitating economies all over the world was being viewed with greater anticipation to pave the road ahead for growth and development. The budget in a very acute sense projects this with following proposals:
Change in income tax rate slabs to the advantage of individual tax payers.
Reduction in surcharge to corporate tax payers.
Abolition of Commodities Transaction Tax.
Retention of same rate of service tax.
Extra boost for investment in Infrastructure Bonds.
Establishment of agencies to monitor the implementation of infrastructure projects.
Other successful programmes of past years revamped to suit the future requirements (NREGS, APDRP, ICDS, SHG, etc.)
However, the budget was condemned by opposition parties on various issues and this happens to be the first budget that led to walkout of opposition parties.
The major short comings in the budget can be owed to the following:
Increase in excise duties and fuel prices.
Postponement of GST to one more year.
No changes in the basic tax rate of corporate tax payers.

The theme of this budget lies in creating demand through surplus funds in the hands of consumers (individuals) through reduced direct taxes and then charging them for consumption through the way of indirect taxes.

In view of all the above, I opine that no budget would satisfy everybody, as it is only a balancing act of Government Revenues and Expenditures, and keep check of the fiscal deficit, which in the current budget is on the higher side at 6.8% of GDP. There is no need to despair and criticize the budget, as other reforms are due in the near future. I am sure that the coming times will bring better reforms and a lot of growth in infrastructure. The present budget is only a half hearted signal in this direction. I hope for better reforms in times ahead.