Indian Budget - For tax payers

Posted July 7, 2009 - 11:00 by isohelpline
Individuals:

  • Men: Exemption limit increased from Rs. 1,50,000 to 1,60,000
  • Women: Exemption limit increased from Rs. 1,80,000 to 1,90,000
  • Senior Citizen: Exemption limit increased from Rs. 2,25,000 to 2,40,000
  • 10% surcharge applicable above income of 10 lac also removed.
  • Wealth tax now payable above taxable wealth over Rs. 30 Lac instead of 15 lac.
  • Advance tax to be paid only if tax liability is over rs. 10,000 instead of 5,000 earlier.
  • After October 1, 2009 most gifts in kind above Rs. 50,000 will be taxable.

Business:

  • No change in income tax slabs
  • Fringe Benefit tax abolished
  • Sops for exporters announced in December 2008 extended till March 2010.
  • Tax write-off on R&D expenditure extended for all manufacturing units.
  • Credit on minimum alternate tax (MAT) can be carried forward for 10 years instead of 7 earlier.
  • MAT increased from 10% to 15%
  • Service Tax on legal consultancy firms
  • Section 10A and 10B tax holidays for STPs and EOUs extended to 31 March 2011
  • Minor changes in excise duty on some items.

Investor:

  • Commodity Transaction Tax (CTT) abolished.
  • New Pension Scheme exempted fro I-T, STT, and dividend distribution tax.
  • Floor for non-promoter holding in all listed companies to be hiked

The budget has not given the benefits in monitory terms directly but the fund allocations to rural, infrastructure, defense and other sectors will provide new opportunities for employment and circulate sufficient funds in the market to boost economy.

Note: This is just the highlight and not a taxpayers guidance.

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