2010 budget expections - India

Budget 2010 India Expectations What measures will be taken up to tame high inflation rate, which has given rise to high prices of primary food articles and has caused fiscal deficit?

How a balanced budget will be managed to cope up with rapid economic growth and the stagnancy seen in the below poverty level?

The finance minister has plenty of issues to take into notice in order to come up with an ideal budget plan that meets everyone’s expectations. The results will be unfolded in the month of February. But, the expectations from budget 2010 that have come to the notice are vital and play significant role in the pre-budget scenario.

Taxes:

The common men and the corporates are looking for decrease in taxes. The Finance Minister is likely to augment exemption limit of individual taxes to Rs 3 lakh from Rs1.60 lakh for salaried people. Exemption limit for women is expected to be increased from 1.80 lakh to 4 lakh and for senior citizen from Rs 2 lakh to 5 lakh.

However, taxes levied on the perks availed by income earners are expected to be restructured on higher level. This arrangement may satisfy junior employees and senior citizens. But, it may not go well with the people belonging to higher position.

Corporate Tax:

A reduction of 30% is expected in the corporate tax. The expectation is found in line with the introduction of Direct Tax Code (DTC) suggesting a 25% rate. The individual rate was lowered by 30% previous year also.

Capital Gains Tax:

As far as the 2010 India Budget expectation in the area of capital gain tax is concerned, finance minister is unlikely to bring any reform in this category of tax. It is predicted to be included under the Direct Tax Code, to be implemented from April 2011.

Re-fixing of Tax Slabs:

As mentioned earlier, the tax slab for women is expected to be revised to 4 lakh and senior citizens to Rs 5 lakh. However, second and third slabs of tax would see significant change.

The second tax slab is expected to be augmented from the existing Rs 3 lakh to Rs 1 million to be taxed at 20%. The third slab is likely to be increased from Rs 5 lakh to Rs 25 lakh to be taxed at the rate of 30%.

These revisions would act in favor of the reputed advocates as well as the doctors.

Gratuity Limit:

The India Budget 2010 expectations show that significant revision in gratuity limit is also considered. The gratuity limit of the income class is expected to be raised to Rs10 lakh in thebudget 2010 from Rs 3.5 lakh. Both the upper as well as middle level executives will benefit a lot, if this revision is brought into effect.

Employees are paid gratuities in the government as well as corporate organizations during the time of their retirement. The amount that is dished out as gratuity falls outside the tax regime. If the gratuity limit is enhanced, the employees will surely benefit from it.

Self Assessment Slab:

The self assessment slab for businessmen and professionals is Rs 40 lakh at present. According to expectations, the slab may be revised to Rs 1 crore to lower the burden felt by the business people and professionals.

Stimulus:

India Budget 2010 speculations suggest that it is not the right time for the government to roll back stimulus packages, despite the fact that GDP growth of the nation in the Q2 (July – September) of the currentfiscal stood at 7.9%.

However, experts believe that government would withdraw few of the subsidies from the market. The oil companies were aided with the stimulus package to check loss. Government did not allow the Oil companies to raise product costs of kerosene and diesel, which would have forced the common men to pay more.

As high prices of diesel and petrol would bear adverse effect on the transport rates of food products, the stimulus packages are expected to continue in the oil industry. However, partial withdrawal of the stimulus aid can be expected in this sector to tackle the situation of increasingfiscal deficit.

Nevertheless, stimulus packages from engineering as well as export sectors are expected to be rolled back.

Agriculture Sector:

According to India Budget 2010 expectations, the agriculture sector would be the highlight of the session. This sector is likely to receive enormous boost from the government. Finance minister’s invitation to the farmers for the pre-budget meet is held to be the main reason behind such speculation.

Infrastructure and Social Sector:

Infrastructure industry is also expected to be the focus of the budget results of 2010. Many believe that development in this sector would account for massive growth in GDP. However, it is unlikely to ease monetary policy to better infrastructure. Interest rate cannot be reduced as well.

Railways:

According to 2010 budget speculations, the transportation charges for bulk commodities in railway industry are likely to be increased. The turnaround in the economic conditions ofIndia is expected to boost the transport costs of cement, coal, iron ore and steel. Previous year, the Ministry of Railway refrained from raising transportation costs to help sector tackle the scenario of global meltdown. The ministry has not come up with its plan for hikes yet. But, the range can be fixed somewhere between 5 and 10%. If this becomes effective, one would need to pay Rs. 100 to 200 per tonne.

Other Sectors:

While taking into account the India Budget 2010 expectations of various sectors, it was found that the garment industry of India is looking for considerable cut in interest rates in its exports segment. The garment exporters also want the ministry to remove all the confusion faced in the case of excise as well as custom duties. The sector wants major commercial as well asfiscal relief. Similarly, the Indian tea industry is expecting to get an allocation of more than Rs 130 crore, which was granted in thefiscal year 2009-10.

Some of the scenario of the common man from the Union Budget 2010:

1. Income tax slab must be raised to Rs. 2,50,000 for individual males. For females the limit will be suppose to Rs. 3,00,000 and forsenior citizens it should be increased from Rs. 2,40,000 to Rs. 3,50,000.
2. To encourage saving of common man the deduction limit of u/s 80C should be increased from 1,00,000/- to 2,50,000/-.
3. Medical expenses tax free limit of Rs. 15,000 should be increased as increasing health care cost in medical sector.
4. Transport allowance is allowed upto Rs.800 per month for travelling from home to office and back. This should be increased to Rs.2,500 per month.
5. Interest paid for Housing Loan under Sec 24 is Rs. 1,50,000 at present to Rs. 2,50,000 .
6. Senior citizens are considered people aged above 65 years. This should be reduced to 60 years. The age factor to determine senior citizens discrepancy should be eliminated.

Aircraft Gets Personal With NASA's Puffin

What takes off like a helicopter, flies like an airplane and makes about as much noise as an electric car?

Why that would be a Puffin, a prototype one-person aircraft that is part of a broader NASA initiative to develop technologies for personal air travel.

No one has ridden inside a Puffin as yet. Right now, it's a subscale model without a body or tails. But the electric-powered vehicle already has aced one of its most difficult goals: quiet flight.

"It's a 10 times reduction in noise from the quietest helicopters today," said Mark Moore, an aerospace engineer at NASA's Langley Research Center in Hampton, Va.

That's important if personal air vehicles are ever going to bridge the gap between commercial air transport and the family car.

"It's inevitable that someday more and more people will take to the air in on-demand vehicles," Moore told Discovery News. "It will happen. There's just no other way to achieve fast, on-demand, high-speed travel."

The idea is to develop an air-based transport system that doesn't require people to drive long distances to airports to board planes for relatively short flights.
helicopter
WATCH VIDEO: Engineers from the NASA Langley Research Center unveiled plans to build a personal flying machine that would run on a set of electric motors.

Watch the video guys. its really awesome.


"We're not trying to replace the car or the airplane," Moore said. "Cars are great at what they do, which is go a couple of miles at relatively slow speeds. Commercial air carriers are great at going long distances at faster speeds. But what happens when we want to go 100 or 200 or 300 miles? We have to take this very long drive."

"There is a huge gaping hole in our transportation system," Moore added. "We're trying to come up with another alternative."

The Puffin, named because it resembles the bird, has not yet flown publicly, but Moore said its longest flight lasted five minutes.

"The intent is not to be a viable product. NASA doesn't develop products; we develop new technologies that can provide industry with the ability to generate new products," Moore said.

"It's a very exciting vehicle that brings together a whole bunch of technologies," added Brian Seeley, who heads the Comparative Aircraft Flight Efficiency (CAFE) Foundation, hosts of a NASA prize competition for fuel-efficient, environmentally friendly aircraft.

NASA has spent about $500,000 on the Puffin, which was developed in partnership with Massachusetts Institute of Technology, the Georgia Institute of Technology, the National Institute of Aerospace and M-DOT Aerospace.