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In an effort to provide interim relief to small and marginal taxpayers and senior citizens, the Finance Minister of India, Pranab Mukherjee presented the Union Budget 2009-10 today. This years budget witnessed a gradual hike in the income tax exemption limit.
The income tax exemption limit for senior citizens of the country was raised by Rs.15,000, thus revising the amount from Rs.2,25,000 to Rs.2,40,000. Similarly, the budget has also raised the income tax exemption limit by Rs.10,000 for women tax payers thus mounting the amount from Rs.1,80,000 to Rs.1,90,000. A hike of Rs.10,000 was also observed for other individual tax payers, mounting the amount from Rs.1,50,000 to Rs.1,60,000.
The Finance Minister wiped off the surcharge on income above Rs.10,00,0000 for personal income tax payers. Mukherjee, took a step forward in favor of the corporates as he abolished the Fringe Benefit Tax and Commodity Transaction Tax. However, the Minimum Allocation Tax on book profits has been increased from 10% to 15%. The Finance Minister also increased the deduction for maintenance of medical treatment of dependence from Rs.75,000 to Rs.1,00,000, thus bringing relief for the tax payers.
The Finance Minister also brought lawyers under the ambit of service tax in the Union Budget 2009-10. “I propose to bring certain legal services under the ambit of service tax,” Mukherjee said. New Pension “System Trust has been exempted from security transaction tax and dividend distribution tax,”, said the Financial Minister of India, Pranab Mukherjee.
While presenting the Union Budget, Mukherjee said that the Government will come up with a simplified salary structure. The income tax department has been asked to come up with a simplified version of the tax filing form Saral, called Saral 2.
The Union Budget 2009-10 presented by the Finance Minister of India, Pranab Mukherjee, proved to be a ‘populist’ one. The Finance Minister promised to halve the poverty by 2014 as he laid focus on employment, infrastructure and agriculture.
The Finance Minister declared new incentives for farmers, 45 percent jump in funds for Bharat Nirman, India’s flagship rural reconstruction development program, development of the urban areas and revival of the divestment program. He also announced that the National Food Security Act will come into effect soon thus providing the poor with 25 kg of rice per month at Rs. 3 per kg. The Finance Minister also announced that a new insurance plan will be enacted for those living below poverty line.
The income tax exemption limit was hiked by Rs15,000 for the senior citizens whereas for the women, the exemption limit was hiked by Rs.10,000. The Finance Minister also promised to abolish the Fringe Benefit Tax or FBT thus bringing a sigh of relief for the corporates.
Pranab Mukherjee, while praising the Late. Prime Minister of India, Indira Gandhi declared that the UPA government is likely to push an agenda which will ensure 12 million new jobs each year thus reducing the poverty by 2014. “The first challenge is to bring back the GDP (gross domestic product) growth rate to 9 percent per year,” quips Mukherjee as he presented the Union Budget in the Parliament.
The Financial Minister also stated that the farm loan waiver are to be increased by six months. As per this years budget Rs.3937 crore will be allotted for the development of the urban areas. National Mission for Female Literacy is to be launched.
“Aam admi is the main concern for our programs and schemes,” wounds up Mukherjee.
 Every Indian is eagerly awaiting the biggest Budget ever, amidst the slowing down economy. Finance Minister Pranab Mukherjee would present Union budget for this fiscal from 11 this morning. What remains to be seen is how the Union Ministry strikes a balance between allocation of resources to funds for welfare scheme and minimizing the overload on business and aam admi(average citizen).
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