Corporate tax unchanged.
v Personal income tax exemption limit for senior citizens raised by Rs
15,000 and for others the exemption limit raise by Rs 10,000.
v 10 per cent surcharge on Personal Income tax removed.
v Fringe Benefit Tax and Commodity Transaction Tax abolished.
v GST to come into effect from April 01, 2010.
v Donations to electoral trusts shall be allowed as a 100 per cent
deduction.
v Minimum Alternate Tax (MAT) on book profits increased to 15 per cent
from 10 per cent. Carryforward of MAT credit is extended from 7 to 10
years.
v Direct Tax code to be released in 45 days along with discussion paper.
v Income tax incentives on education loans expanded to cover vocational
studies after schooling.
v Deduction u/s 80DD (increases to Rs.1 Lakh from existing Rs.75000/-
(Deduction in respect of maintenance, including medical treatment, of a
dependent who is a person with severe disability)
v Relief to Trust by not taxing anonymous donations received to the
extent of 5 per cent of their total income or a sum of Rs.1 lakh, whichever
is higher.
v All small businesses with a turnover upto Rs.40 lakh will have the
option to declare their income from business at the rate of 8 per cent of
their turnover and simultaneously enjoy exemption from the compliance burden
of maintaining books of accounts. As a procedural simplification they will
be allow to pay their entire tax liability from business at the time of
filing their return by exempting them from paying advance tax. This new
scheme will come into effect from the financial year 2010-11.
v Personal income tax exemption limit for senior citizens raised by Rs
15,000 and for others the exemption limit raise by Rs 10,000.
v 10 per cent surcharge on Personal Income tax removed.
v Fringe Benefit Tax and Commodity Transaction Tax abolished.
v GST to come into effect from April 01, 2010.
v Donations to electoral trusts shall be allowed as a 100 per cent
deduction.
v Minimum Alternate Tax (MAT) on book profits increased to 15 per cent
from 10 per cent. Carryforward of MAT credit is extended from 7 to 10
years.
v Direct Tax code to be released in 45 days along with discussion paper.
v Income tax incentives on education loans expanded to cover vocational
studies after schooling.
v Deduction u/s 80DD (increases to Rs.1 Lakh from existing Rs.75000/-
(Deduction in respect of maintenance, including medical treatment, of a
dependent who is a person with severe disability)
v Relief to Trust by not taxing anonymous donations received to the
extent of 5 per cent of their total income or a sum of Rs.1 lakh, whichever
is higher.
v All small businesses with a turnover upto Rs.40 lakh will have the
option to declare their income from business at the rate of 8 per cent of
their turnover and simultaneously enjoy exemption from the compliance burden
of maintaining books of accounts. As a procedural simplification they will
be allow to pay their entire tax liability from business at the time of
filing their return by exempting them from paying advance tax. This new
scheme will come into effect from the financial year 2010-11.