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.