Pre-Budget `09 Whispers

When the FM presents his full Budget on 6^th July `09, his priorities will be clear –

• Bridge the fiscal deficit
• Garner funding for infrastructure
• Put economy back on high growth trajectory
• Promote Equitable Growth
• Inflation – Even as WPI falls, consumer price index is very high
• Need for simplified, revised income-tax regulations

Here is a roundup of news for what is being contemplated for the forthcoming Budget `09 and the expectations of various sections from the Budget.

Hazarding guesses – What is likely:

• TDS rates may be recast – fewer rates, more incomes
• TDS debut for SME producers?
• More depreciation sops on cards for India Inc
• Budget to answer service export tax riddle
• Govt looking into new tax-saving scheme to mop up ‘idle’ money
• Budget to spell out road map for gradual phase-out of STT
• No major changes to tax rates
• Govt considering removal of FBT, service tax for exporters
• Finance ministry likely to dilute Fringe Benefit Tax in Budget
• Investment in New Pension Scheme (NPS) will get tax exemption
• Political compulsions: Govt may not cut small savings rate
• Budget may spell out tax norms for LLPs
• Urban Development minister seeks more I-T relief for home interest payout
• Commerce ministry mulls removal of ‘sunset clause’ for EOUs

Budget `09: What does Pranab have up his sleeves?

• Will there be a fourth stimulus package?
• Immediate challenge: Bridging the fiscal deficit
• Inflation falls, but prices of commodities rise
• Pressure to bring down income tax rates
• Massive disinvestment on the cards
• India Inc seeks an investment-led Budget

Budget `09 –Measuring Expectations

• Need for Income Tax Reforms
• CII’s Budget wishlist: Up IT exemption limit,no FBT, surcharge
• ICMA’s wishlist for the budget – Vat at 4%, reduction in other taxes
• Roadmap for GST 2010
• Insurers seek tax exemption limit for long-term investments
• Recession-hit IT sector wants fiscal benefits extended
• Roll back excise duty on packaged software to 8%
• Telcos seek duty cut to reduce service cost
• Commexes seek CTT burial
• Capital subsidy sought for units making solar PV products
• Foreign borrowings may get tax break
• Consumer durable sector seeks slash in excise duty, more FTAs
• Prices of cancer, AIDS drugs may come down in India post-Budget 2009
• Move on to a single corporate tax rate
• Give salaried a tax break
• Revamp transfer pricing regulations
• Sebi wants finmin to withdraw Mutual Fund tax benefits to corporates
• If I were FM
• Sensex & Budget
• Sectorwise Wish List
• Aam Aadmi: traders’ wishlist
• Earlier Stories – Reuters Roundup upto 17th June `09