Direct tax code from Apr 2012: FM

The government will implement direct tax code from April 2012, Union Finance Minister Pranab Mukherjee said as he presented this year’s annual budget in Parliament on Monday.

In the budget, the FM also hiked farm development to Rs 7860 crore.

The FM said high inflation and food inflation are concerns while the economy is expected to grow at 9 percent.

He said current account deficit will come down along with inflation.

The other hightlights are:

Disinvestment target of Rs 40,000 crore.

Rural infrastructure fund raised to Rs 18,000 crore.

RBI guidlines for banking licences.

Aim for fiscal deficit of 3 percent by 2014.

Task force to look into all subsidies.

Rs 3000 crore to NABARD

15 more mega food parks proposed.

Faced with the task of reducing rising food inflation, Union Finance Minister Pranab Mukherjee set out to present a populist budget for this year.

People are also expecting a tax exemption hike.

The nation is also expected to hear the FM’s views on the black money issue.

Pranab Mukherjee earlier said that direct taxes are now the major resource provider to the Central Government for undertaking developmental work.