Yes it does, especially it is true with fake NGO's backed by politicians who quickly emerges the moment any international body like world bank want to donate some money for social welfare in the country.Anonymous funds to charitable bodies get some tax relief
Now, I don't know much about this... but isn't this the standard way of money laundering ??? Anonymous funds to Charitable Bodies...
This has certainly to do with pleasing MNC and some domestic Pharma companies who are engaged in producing lifestyle drug for Cancer. I don't think, even this Drug for cheaper rate materialize, since many MNC pharma backed by international bodies like EU are fast pressurizing India to bring changes in its Medical regulations to suit their needs under the pretext of Free trade Agreement.
- Drugs for heart diseases to become cheaper
- Rs 1,000 cr for Aila rehabilitation to West Bengal
Promising to halve poverty by 2014 and add 1.2 crore jobs each year, Finance Minister Pranab Mukherjee presented India's budget for this fiscal that hikes income tax exemption limit and steps up allocations for welfare schemes and infrastructure, while assuring high growth for the $1.2 trillion economy once again.
The income tax exemption limit for senior citizens was sought to be hiked by Rs 15,000, while that for women and others was stepped by Rs 10,000. The 10 per cent surcharge on personal income tax also sought to be removed in Mukherjee's budget presented in the Lok Sabha.
New incentives to farmers, 45 per cent jump in funds for Bharat Nirman, India's flagship rural reconstruction programme, higher spending on urban development, fresh impetus on energy security and revival of the divestment programme were among the highlights of the 100-minute Mukherjee's budget.
He also announced that the National Food Security Act will be enacted soon promising 25 kg of rice or wheat per month to the poor at Rs 3 per kg, while announcing a new health insurance scheme for those below the poverty line.
For India Inc, the corporate tax rate was kept unchanged, even as the Finance Minister sought to reduce the burden on industry by rolling back the Commodities Transaction Tax, but hiking the Minimum Alternate Tax to 15 per cent of book profits.
Mukherjee also promised to scrap the Fringe Benefit Tax to please corporates, introduce a pan-India goods and services tax from April next year and gave 100 per cent tax deductions to political donations.
Dressed in a smart white bandgala suit, the 73-year-old politician - who had presented his last budget as finance minister in the government of prime minister Indira Gandhi 25 years ago - said the United Progressive Alliance (UPA) Government would push forward an agenda that will ensure 1.2 crore new jobs each year and reduce poverty by half by 2014.
"The Government also recognises the challenges," he said, referring to the global slowdown and the decline in India's high growth rate in the past year to 6.7 per cent from over 9 per cent in the preceding three years.
"The first challenge is to bring back the GDP (gross domestic product) growth rate to over 9 per cent per annum," he said, setting the tone of what is his fourth career budget watched by Prime Minister Manmohan Singh and UPA Chairperson Sonia Gandhi.
He said the other challenges included better Governance and to ensure that the fruits of development reached across regions to touch the lives of every citizen - the aam aadmi (the common man) as he called them.
Mukherjee said infrastructure would also be a priority, especially in areas like roads, highways and energy. "I, on my part, will ensure that sufficient funds are made available to these sectors."
The Finance Minister also said the unique identification plan, approved by the previous UPA Government will be operational in 12-18 months and the process begin to hand over biometric smart cards to 1.17 billion citizens.
He said the total central government expenditure for the current fiscal year had been stepped up to Rs 10,20,800 crore, and compared it with Rs 193 crore that was set aside in the country's first budget over six decades ago.
Mukherjee said with industry still under the grip of global recession, the finance minister said he was providing additional incentives in the form of both direct and indirect taxes.
He enhanced the customs duty on items like set-top boxes, LCD televisions and premium textile goods to encourage domestic production and value addition.
http://www.timesnow.tv/Pranab-presents-Union-Budget-in-Parliament/articleshow/4321449.cmsTwenty-five years after he was rated the world's best Finance Minister, Pranab Mukherjee on Monday (July 6) presented the Union Budget in the Parliament. Opening the Budget session in the Parliament, Pranab said, “Prime Minister Manmohan Singh said ‘It is a mandate for continuity, stability and prosperity. It is a mandate for inclusive growth and equitable development.’ We are here to do all that we can for the welfare of this nation. The focus of budget 2009-10 is to create, facilitate and sustain opportunities.”
Spelling the challenges that the government faces, the finance minister said that the main challenge in front of the economy is to return to a 9% growth rate. The second challenge is to broaden inclusive growth agenda. However, highlighting the positives, Pranab added that there has been a strong rise in flow of foreign capital, despite the economic slowdown.
With the West grappling with recession blues, all eyes were on this all important budget. India Incorporation, the Rural and Social sectors and the ‘aam admi’ awaited these reform moves from Pranab and are expecting a much better fiscal year under his agenda.
Highlights of Budget 2009
- Growth rate in 2008-09 dipped to 6.7 per cent from average 9 per cent growth in previous three fiscal years.
- Mukherjee intends to make pre-budget consultations with state finance ministers an annual affair
- Fiscal deficit grew from 2.7 per cent to 6.8 per cent of GDP
- We need institutional reforms to being fiscal deficit down, says the FM.
- Total fiscal stimulus during 2008-09 amounts to Rs 1,86,000 crore.
- To return to FRBM target for fiscal discipline at the earliest, says Mukherjee.
- Fiscal deficit in 2009-10 is proposed at 6.8 per cent of GDP.
- Share of direct taxes has increased to 56 per cent in 2008-09 over 41 per cent in 2007-08.
- Direct Tax code to be released in 45 days along with discussion paper.
- Effort is to improve tax collection by eliminating distortions in tax system and expanding the base
- No change in Corporate Tax.
- Ten per cent surcharge on personal income tax removed.
- I propose to raise by Rs 10,000 the exemption limit for women on income tax. For all others, Rs 10,000 up from Rs 1,50,000, says Mukherjee.
- Income Tax rates exemption limit to 2,25,000 to 2,40,000 for senior citizens.
- Fringe benefits tax abolished.
- Tax holidays extended by one more year.
- Commodities transaction tax abolished.
- Proposal to incentivise business. I propose to start Investment linked tax benefits in areas of agriculture and national grid, says Mukherjee.
- To further improve the efficiency of tax system, I propose to set up two authorities for advance ruling, says Mukherjee.
- Minimum Alternate Tax on book profits increased to 15 per cent from 10 per cent.
- New pension system trust exempted from security transaction tax and dividend distribution tax.
- Income tax incentives on education loans expanded to cover vocational studies after schooling.
- Small businesses up to Rs 40 lakh turnover exempted from filing advance tax returns.
- Presumptive Taxation of 8 per cent on businesses of turnover of up to Rs 40 lakh.
- IT returns to be made simpler, says Mukherjee.
- Govt to extend tax waiver on some exports to March 2010.
Not necessarily, even I myself a salaried taxpayers, but I go and do vote during electrol season. On the top of that, penalizing tax evaders may not be a bad idea, as it will rather increase revenue to arrest mounting fiscal deficit.^^ That is easier said than done my friend, Reason - Votebanks...
The lower classes go out and vote, the salaried taxpayers don't even care to do that (for proof see the voting percentages in the wealthier sections of Mumbai and Delhi)