Presenting the Union Budget 2010-11 in the Lok Sabha, finance minister Pranab Mukherjee today proposed to raise the turnover limits above which small businesses need to audit their accounts to Rs60 lakh, from the present Rs40 lakh, for businesses. He also raised the audit base for professionals to Rs15 lakh from the present Rs10 lakh.
Limit of turnover for the purpose of presumptive taxation of small business has also been enhanced to Rs60 lakh.
To facilitate the conversion of small companies into limited liability partnership, the Budget proposes to exempt the transfer of assets as a result of such conversion from capital gains tax.
Mukherjee also extended investment-linked tax benefits to the tourism and real estate sectors. The benefit of investment-linked deduction under the Income Tax Act has been extended to all new hotels of two star category and above across the country.
As a one-time interim relief measure for the housing and real estate sector, all pending projects have been allowed to be completed within a period of five years instead of four years for claiming a deduction on the profits.
The norms for built-up area of shops and other commercial establishments in housing projects have also been relaxed to enable basic facilities for the residents.