Are you satisfied with this year’s budget?

Finance minister Pranab Mukherjee presented the Union budget 2010-2011 on February 26 in the Lok Sabha.

Giving substantial benefits to individual and corporate tax payers, Mukherjee sanctioned a sum of Rs 26,000 crore to the personal tax structures. While there would be no tax for income up to Rs1.6 lakh, a tax of 10% would be levied for income up to Rs5 lakh, 20% for up to Rs8 lakh, and 30% beyond that level. In addition, Mukherjee announced that investment in long-term infrastructure bonds will get exemption of Rs20,000 over and above the existing limit of Rs1 lakh.

As per the existing structure, there is no tax on income up to Rs1.6 lakh, 10% is levied on income up to Rs3 lakh, 20% up to Rs5 lakh, and 30% thereafter.

Surcharge on corporate tax has been reduced from 10% to 7.5%. Last year, the surcharge on income tax was done away with. However, the finance minister raised the minimum alternate tax (MAT) to 18% from the current 15% on the book profits of companies that are not coming in the tax net because of various exemptions.

Even though taxpayers are cheering because of the unexpected pleasant changes announced in the budget, corporations believe what the government gave them by reducing surcharge, has been taken away in the form of MAT.

What do you think about the changes made to the personal and corporate tax structures in the Union budget 2010-2011? Are you satisfied with this year’s budget?