Nothing big bang; disappointing overall

Sensex Down:Sensex on Jul 6 2009

Notes

  • Surcharge on personal tax scrapped.
  • Fringe benefit tax scrapped.
  • Personal tax limit increased to 2.4 lakhs for senior citizens , 1.9 lakhs for women, 1.6 lakhs for others
  • No change in Corporate tax.
Disappointing for housing, they were expecting a lot more.
Only small changes in terms of personal tax — which means people will have a little more to spend. Perhaps this will benefit FMCG. Certainly not enough for housing.
Fairly good for infrastructure, some bank loans will be refinanced but less than expected. Hence infra stocks down
Emphasis on education
Good for IT Sector. Earlier had to pay excise & service tax –> now pay only service tax on transfer of licenses
Overall some simplification of taxes.

Budget Highlights http://indiabudget.nic.in/ub2009-10/bh/bh1.pdf

Full text of Pranab Mukherjee’s Speech: http://indiabudget.nic.in/ub2009-10/bs/speecha.htm

Coverage on Yahoo Finance: http://in.budget.yahoo.com/live-coverage.php

Advertisements