What are the expectations of budget 2010-11?

Individual basic exemption under the Income Tax Act may increase marginally. Finance Minister may take the first step towards fiscal consolidation in Budget 2010-11 by partially rolling back tax cuts given to industries last year. The Service Tax rate may be restored to 12 per cent, while excise duty could be increased marginally.

Ministry is considering a phased exit of the stimulas measures as the economy posted a robust 7.9 per cent growth in July-August quarter of 2009-10. To begin with, it wants to withdraw measures that are not likely to impact the industry significantly, such as the 2 per cent service tax cut. In the case of excise duty, the increase may not be equivalent to 6 per cent reduction that the industry got from the government as part of the stimulus measures.

The Budget changes would also be used as an opportunity to rationalise indirect taxes ahead of introduction of the GST. Introduction of GST will postpone, DTC may introduce with effect from 1-4-2011 with redrafted provisions. IFRS will be implimented with effect from 1-4-2011 without including small and medium enterprises(SMES). There may not be much chnages as far as other provisions.

In about a month, our Finance Minister will put an end to the suspense by telling us if the fiscal stimulus will stay or go, if taxes will go up or hopefully down, if exemptions will be maintained or not. I believe that the government will be considering an across-the-board increase in excise duty in Budget 2010-11, as it faces pressure to withdraw fiscal stimulus measures in the wake of a 16-year high fiscal deficit of 6.8% in the current financial year.

upcoming budget should ideally focus on taming down inflation ,prices of primary food articles ,rising fiscal deficits and as such but as expected it would focus on covering up this mess with few expansion in exemption in tax slabs , minor tax rate cuts for corporates ,some  reforms for agri sector, hopefully (in light of pre budget meet with farmers ).expecting any radical change is superficial considering the current scenerio .besides this government is least likely to pull out stimulus instantly but gradually depending upon the economic condition .

None in the helm of affairs seems to have real grasp of the enormity, magnitude and

volume of the econominc strucures required to meet the socio-economic needs and aspirations

of a billion and odd; that are continuously growing in geometric proportion 

as the time progress. Looking in the right perspective, for a contry like ours

the proposals and figures in our annual budgets are only a miniscule of what really need.

The politician by and large in this country lack courage to go anywhere near the real issues. 

Instead of concentrating on these, those in the government and the opposition vie each

other in fighting on many non-issues in the name of people, magnifying them out of proportion

leaving the real problem areas where focussed actions are urgently required to hoodwink the people.

In my opinion India need to look for ways and means to generate and spend trillions of rupees in

various infrastructure and over all development in every field across the country.

Predicting Indian economic seen is like predicting a cat and mouse game. The stimulus is already in place so cannot expect too much stimulants in the budget. The bank credits is not taking off, so they might raise rates before fearing political backlash and then provide some stimulants in budget to compensatie for the confustion that may arise from then on.

Generally it is seen that people save 20-30% of there earnings and some part of them they invest to get more tax benefit and some interest but if investors are happy then they will invest more and spend less so the liquidity in the market will increase and GDP will increase we can develop soon with these type of schemes.

The limit on investment at present is Rs.100000 so it should be increased.