Following are the main sectoral expectations of brokerages from the Union Budget 2010.
- Increase in excise duty by 2-4 per cent.
- Increased allocation under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for buses
- No change in excise duties for large cars
Banking & Financial Services
- Interest subventions for pre-shipment credit and short-term crop loans announced in the last budget are expected to be withdrawn.
- Relaxation in the lock-in period for fixed deposits - from five to three years - to qualify for tax benefits under Sec.80C.
- Increase in the ceiling of TDS (Tax Deducted at Source) on interest income from fixed deposits.
- Allowing banks to raise tax-free infrastructure funds.
- Tax breaks to housing finance and infrastructure-lending companies.
- Housing loans below Rs 3 million (currently at Rs 2 million) to be considered as "priority sector" lending.
- Refinancing from India Infrastructure Finance Co Ltd (IIFCL) for upto 60 per cent of commercial bank loans for PPP (public private partnership) projects in critical sectors is expected to continue.
- Increase (Foreign Direct Investment) FDI in insurance sector from 26 per cent to 49 per cent.
- Recapitalisation of PSU (Public Sector Undertaking) banks with lower tier-1 capital.
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