Tuesday, July 7, 2009

Financial Budget 2009 highlights

  • Income tax exemption limit raised by Rs 10,000 tor men and women and by Rs 15,000 for senior citizens.
  • 10% surcharge above Rs 10 lakhs scrapped.
  • The interest on educational loan for any field of study after class X is now tax deductible.
  • Wealth tax exemption limit raised from Rs 15 lakhs to 30 lakhs.
  • Advance tax need to be paid only if tax liability exceeds Rs 10,000 instead of the limit of Rs5,000 earlier.
  • FBT on companies scrapped. Perks like Esops are to be taxed in the hands of the employees.
  • Most gifts in kind worth over Rs 50,000 to become taxable after 1st October.
  • Commodities transaction tax on derivatives trading abolished.
  • Floor for non-promoter holdings in all listed companies to be hiked.
  • New pension scheme exempted from income tax and dividend distribution tax.
  • NPS still not exempt from tax on maturity or on withdrawal.
  • Customs duty reduced on certain life saving drugs and medical equipments.
  • LCD TVs may become cheaper due to reduction of 5% customs duty on LCD panels.
  • Branded jewellery exempted from excise.
  • Excise on several house hold items including contact lenses, tooth brudhes and man made fabrics increased from 4% to 8%.
  • Customs duty doubled on import of gold and silver bars.
  • 5% customs duty levied on import of set top boxes.
  • Sops for exporters announced in December 20008 extended until March 1010.
  • Tax write off on research and development expenditure extended to all manufacturing units.
  • Credit on minimum alternate tax can be carried forward for a period of 10 years instead of 7 years.
  • Section 10A and section 10B tax holiday for STPs and EOUs extended upto 31 March 2011.
  • Minimum alternate tax increased from 10% to 15%.
  • Service tax levied on legal consultancy to firms.
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