Jul 172009
 

My comments on Budget 2009-10 are as below:

Tax exemption limit should be same for all categories. It can be Rs.1,60,000/- or Rs.1,90,000/- or Rs.2,40,000/-. It was expected that it would be raised Rs.2,00,000/-. As it did not happen there was disappointment.

Abolition of Fringe Benefit Tax is good.

Minimum Alternate Tax should not have been increased from 10% to 15%.

Abolition of Commodity Transaction Tax is good.

Not taxing anonymous donations received by charitable organisations to the extent of 5 per cent of
their total income or a sum of Rs.1 lakh, whichever is higher is good.

Reducing the basic customs duty on permanent magnets – a critical component for Wind Operated Electricity Generators – from 7.5 per cent to 5 per cent is good.

Reducing the customs duty on influenza vaccine and nine specified life saving drugs used for the treatment of breast cancer, hepatitis-B, rheumatic arthritis etc. and on bulk drugs used for the manufacture of such drugs from 10 per cent to 5 per cent and totally exempting them from excise duty and countervailing duty is good.

Reducing the customs duty from 7.5 per cent to 5 per cent on two specified life saving devices used in treatment of heart conditions and totally exempting them from excise duty and countervailing duty is good.

Extending service tax to lawyers is good. P. Chidambaram was a lawyer and he exempted lawyers from service tax.