New Delhi, Feb. 15 With the existing income tax rates likely to continue, expectations now centre on whether Mr Pranab Mukherjee, Minister in charge of Finance, will seek to amend the other aspects of the income tax law when he presents the Interim Budget for 2009-10, in Parliament on Monday.
The previous occasion the Government had gone in for an interim budget was for the year 2004-05.
A new Finance Bill is necessary as the Government would have to specify the advance tax rate for the June 15 instalment and the rates for tax deduction at source (TDS) applicable for salaries that will be paid from April 1 , sources said.
Indications are that the Government may announce the extension of certain tax holiday for the information technology sector and export-oriented units.
Also on the table are proposals for further excise duty cuts in sectors such as automobiles and auto components.
Infrastructure development, the commitment of the Centre to usher in a ‘goods and services tax’ system and steps to attract more foreign investments including through venture capital funds, are likely to find special mention in the Budget speech.
The economy is badly in need of a boost to achieve 7 per cent growth in 2008-09. In 2007-08, it had grown at 9 per cent.
Already, the Centre has unveiled two stimulus packages to ensure that the India growth story remains in tact despite the global financial meltdown.
‘Last chance’
The Interim Budget is being seen as the last opportunity for the UPA Government to give a big fiscal push to the economy before the Election Commission announces the dates for the general elections.
Once the election dates are announced and the model code of conduct takes effect, it would be difficult for the Government to announce major policy decisions.
Source : Business Line