Lowering provisioning norms for bank lending to construction/real estate companies. This will infuse liquidity and re-instill confidence in the battered down sectors.Providing additional tax breaks in order to encourage private sector participation in the infrastructure sector. 2.Energy-2010 has been a crucial year for Indian energy sector as oil and gas industry witnessed long awaited reforms like deregulation of petrol prices and substitution of oil bonds with cash subsidies.It is unlikely that Government will deregulate diesel prices due to high inflation levels and forthcoming state elections. Rather, it may slash taxes and duties on refined petroleum products and crude oil to ease the under recoveries burden for Oil Marketing Companies(OMCs) 3.Information Technology (IT)-The last couple of quarters have been encouraging for the Indian IT industry.India will continue to dominate the IT off shoring market. This is because of the fact that global clients are now trying to justify every dollar they spend towards technology outsourcing. Hence, there is a growing pressure on technology budgets that will force companies in the US and Europe to outsource to the low cost but high value destinations like India and avoiding litigation along with reduction in minimum alternative tax for companies. 4.Banking-n the current fiscal (FY11), the Indian Banking industry has had to deal with tight monetary policy and low liquidity. This is despite the economy expected to grow at a healthy pace of 8.6% this fiscal.So the areas of concerns are Tax benefits on long-term infrastructure bond investments,Higher exposure limits for banks to finance UMPPs (ultra mega power projects) and other power projects,Liquidity concerns need to be addressed as the situation has not completely eased yet,The Government set up a Financial Stability and Development Council (FSDC), a regulatory body to oversee issues related to regulation, financial inclusion, and financial stability during the last budget. More clarity on the working of the same is needed. 5.Fast Moving Consumer Goods(FMCG)- This sector along with companies showing solid growth and firm margins. However, as the year progressed inflation played spoilsport. As input costs continued to climb, margins of FMCG companies came under pressure. The considerable changes can be road map for implementation of Direct Tax Code and goods and services tax.Exemption of oil refining industry from excise duty and Expand limits for income tax exemptions. 6.Telecom-The Indian telecom industry has continued with its strong subscriber additions during the current year. At the end of December 2010, the total subscriber base stood at nearly 747m, of which wireless subscribers contributed to nearly 94%. As we are all aware of 2G and 3G scams so the basic need now is Clarity on the tax treatment for the 3G spectrum fee outflow. So,thank you for giving your precious time in reading this... Soon I"l be updating the details of upcoming BUDGET... Lastly as I always say please leave your suggestions and comments Thanks you... |
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