Dear All,
Finance Minister Mr. Chidambaram presented his seventh full budget - two when the United Front government was in power and the remaining five under the United Progressive Alliance government.
Here are the major highlights:
Income Tax:
- Personal income tax exemption hiked to Rs 1.5 lakh.
- Senior citizens threshold tax limit increased from Rs 1,95,000 to Rs 2,25,000.
- Tax exemption for women increased to Rs 1.8 lakh.
- New tax slabs:
- 10 per cent for 1,50,000 to 3,00,000.
- 20 per cent for 3,00,000 to 5,00,000.
- 30 per cent above 5,00,000.
- Short-term capital gains increased to 15 per cent.
- Commodities Transaction Tax to be introduced on the lines of Securities Transaction Tax.
- Banking cash transaction tax withdrawn from April one, 2009.
- No change in corporate income tax.
- Asset management service under mutual funds, services by stock exchanges to be under Service Tax net.
- Threshold for small service providers raised from Rs eight lakh to Rs 10 lakh.
- Excise on packaged software to be lower from 8% to 12%.
- No excise duty on refrigerating equipment.
- Anti-AIDS drug exempted from excise duty.
- Small cars to become cheaper.
- Reduced excise duty on two and three-wheelers.
- Excise duty on hybrid cars cut from 24 pct to 14 pct.
- Excise on small cars cut to 12 pct from 16 pct.
- Rs 50 crore for tiger conservation.
- Sixth Pay Commission report by March 2008.
- Defence allocation up by 10% from Rs 96,000 crore to Rs 1,56,000 crore.
- 22 Sainik schools get Rs 44 crore.
- Rs 624 crore for Commonwealth Games.
- PAN sole identification in the securities market.
- Debt waiver scheme and relief to small and marginal farmers.
- Duty reduced on life-saving drugs.
- Rs 750 crore for upgradation of 300 ITIs in 25 districts.
- No change in peak customs duty.
- Central sales tax cut from 3% to 2%.
- Govt withdraws banking transaction tax.
- Revenue implication of Indirect taxation to be 5900 crore.
- Direct taxation changes to be revenue neutral.
- Levy on STT only on option premiums.
- Commodities transaction tax introduced like STT.
- Short-term capital gains to be taxed at 15%.
- No change in surcharge of corporate tax.
- Custom duty on steel scrapped.
Regards,
Deepak Kumar Singh
The Institute of Computer Accountants (ICA)
1-8-702/3, Creative Plaza
Shankarmutt, Nallakunta
Hyderabad - 500 044
Phone - 040-65-88-6660
Mobile No. 0 93 90 848586
Finance Minister Mr. Chidambaram presented his seventh full budget - two when the United Front government was in power and the remaining five under the United Progressive Alliance government.
Here are the major highlights:
Income Tax:
- Personal income tax exemption hiked to Rs 1.5 lakh.
- Senior citizens threshold tax limit increased from Rs 1,95,000 to Rs 2,25,000.
- Tax exemption for women increased to Rs 1.8 lakh.
- New tax slabs:
- 10 per cent for 1,50,000 to 3,00,000.
- 20 per cent for 3,00,000 to 5,00,000.
- 30 per cent above 5,00,000.
- Short-term capital gains increased to 15 per cent.
- Commodities Transaction Tax to be introduced on the lines of Securities Transaction Tax.
- Banking cash transaction tax withdrawn from April one, 2009.
- No change in corporate income tax.
- Asset management service under mutual funds, services by stock exchanges to be under Service Tax net.
- Threshold for small service providers raised from Rs eight lakh to Rs 10 lakh.
- Excise on packaged software to be lower from 8% to 12%.
- No excise duty on refrigerating equipment.
- Anti-AIDS drug exempted from excise duty.
- Small cars to become cheaper.
- Reduced excise duty on two and three-wheelers.
- Excise duty on hybrid cars cut from 24 pct to 14 pct.
- Excise on small cars cut to 12 pct from 16 pct.
- Rs 50 crore for tiger conservation.
- Sixth Pay Commission report by March 2008.
- Defence allocation up by 10% from Rs 96,000 crore to Rs 1,56,000 crore.
- 22 Sainik schools get Rs 44 crore.
- Rs 624 crore for Commonwealth Games.
- PAN sole identification in the securities market.
- Debt waiver scheme and relief to small and marginal farmers.
- Duty reduced on life-saving drugs.
- Rs 750 crore for upgradation of 300 ITIs in 25 districts.
- No change in peak customs duty.
- Central sales tax cut from 3% to 2%.
- Govt withdraws banking transaction tax.
- Revenue implication of Indirect taxation to be 5900 crore.
- Direct taxation changes to be revenue neutral.
- Levy on STT only on option premiums.
- Commodities transaction tax introduced like STT.
- Short-term capital gains to be taxed at 15%.
- No change in surcharge of corporate tax.
- Custom duty on steel scrapped.
Regards,
Deepak Kumar Singh
The Institute of Computer Accountants (ICA)
1-8-702/3, Creative Plaza
Shankarmutt, Nallakunta
Hyderabad - 500 044
Phone - 040-65-88-6660
Mobile No. 0 93 90 848586