Budget 2010 and Middle Class

| 2010 |

| |

[Budget 2010-11 and the middle class] |

This assignment covers the highlights of the union budget 2010-11 and discusses the impact of the same on the middle class. Some expert opinions are also included which categorizes the budget and which defines way for the budget of a middle class family. |

IEEP Assignment

Submitted by :

Shalini Talreja

U109134

Contents

Indian Budget 2010-11 and the Middle Class 3

Highlights of Budget 2010-11 3

Budget Effects on Commodities 3

A boon for Income Tax Payers 4

Tax slabs comparison 4

Effects of new tax slab 6

Flip side of the Move 6

Some additional reforms 7

Effects of Budget on Common Man 8

Why the budget won’t help the middle class 8

Factor 1: Increase in Petroleum duties 8

Factor 2: The increase in funding to NREGS 8

Factor 3: MAT increase 8

Factor 4: Standard rate of Central Excise on non-petroleum products 9

Factor 5: New additions to the Service tax list 9

Splurge or invest 9

Expert’s Opinion 10

The final Say 10

Indian Budget 2010-11 and the Middle Class

The Union Budget of India also called the general India budget is presented each year on the last working day of February. The budget is presented by the Finance Minister of India in Parliament. Budget is most economic event in the country which outlines all the economic planning of the Government of India for the next year. It is not only important for corporates but for individuals from all sections of the society. This year’s budget is a budget for middle class consumers, note perfectly 'Consumers'.

Highlights of Budget 2010-11

* Rs. 26,000 crore revenue loss due to reduction of direct taxes

* Partial roll back of reduction in central excise duty 

* Income up to Rs.1.6 lakh per year exempt from income tax; up to Rs.5 lakh to be taxed at 10 percent; income of Rs.5-8 lakh to be taxed at 20 percent and income above Rs.8 lakh to be taxed at 30 percent 

* IT returns forms for...