First thoughts on Budget

First thoughts after budget – after hearing the budget speech by Mr. Pranab Kumar Mukherjee

Not much special for the common man. The Budget mainly aims at promoting Capital market and Market Products. There is nothing to increase the tax holiday given to the big corporates. In fact they have been given some concession.  

Like what I had said in my previous blog there has been soaps for socially weaker section. But the implementation process of neither the schemes nor the fund acquisition for the expenditure is not clearly known.

For the capital market it has been a boom as it can receive fund from the Middle Class People who are normally the government employees. This will help in funding the corporates. Rajiv Gandhi Equity Saving Scheme is the scheme to be implemented for raising the fund.

No measures for agriculture development were sounded in the parliament. So much was missing in the budget. Tax gain of Rs. 41400 cr has been found out. Will it be possible to ensure the social sector reforms with this much of revenue?  We will wait to see the full text of the budget.

Anyway, the rates of majority of items are to be increased with the duty being raised. Cars to be expensive whereas LED and LCD TVs are to be cheaper. Cigars and Pan Masala and ghudkas to be costlier.  

Individual income Tax raised from Rs. 1,80,000 to Rs 2 lakh. The slab rate are

Upto Rs. 2 lakh – Tax Exemption

2-5 lakh – 10 %

5-10 lakh – 20 %

10 lakh and above – 30 %

Not much told about Gift Tax

I quote what Mr. Pranab quoted from Shakespeare’s Play – “I must be cruel only to be kind”