New tax slabs after Budget 2009

July 6, 2009

tax Slab

Reblog this post [with Zemanta]

Highlights of Budget 2009

July 6, 2009

* Growth rate in 2008-09 dipped to 6.7 per cent from average 9 per cent growth in previous three fiscal years.

* Mukherjee intends to make pre-budget consultations with state finance ministers an annual affair

* Fiscal deficit grew from 2.7 per cent to 6.8 per cent of GDP

* We need institutional reforms to being fiscal deficit down, says the FM.

* Total fiscal stimulus during 2008-09 amounts to Rs 1,86,000 crore.

* To return to FRBM target for fiscal discipline at the earliest, says Mukherjee.

* Fiscal deficit in 2009-10 is proposed at 6.8 per cent of GDP.

Taxes

* Share of direct taxes has increased to 56 per cent in 2008-09 over 41 per cent in 2007-08.

* Direct Tax code to be released in 45 days along with discussion paper.

* Effort is to improve tax collection by eliminating distortions in tax system and expanding the base

Tax proposals

* No change in Corporate Tax.

* Ten per cent surcharge on personal income tax removed.

* I propose to raise by Rs 10,000 the exemption limit for women on income tax. For all others, Rs 10,000 up from Rs 1,50,000, says Mukherjee.

* Income Tax rates exemption limit to 2,25,000 to 2,40,000 for senior citizens.

* Fringe benefits tax abolished.

* Tax holidays extended by one more year.

* Commodities transaction tax abolished.

* Proposal to incentivise business. I propose to start Investment linked tax benefits in areas of agriculture and national grid, says Mukherjee.

* To further improve the efficiency of tax system, I propose to set up two authorities for advance ruling, says Mukherjee.

* Minimum Alternate Tax on book profits increased to 15 per cent from 10 per cent.

* New pension system trust exempted from security transaction tax and dividend distribution tax.

* Income tax incentives on education loans expanded to cover vocational studies after schooling.

* Small businesses up to Rs 40 lakh turnover exempted from filing advance tax returns.

* Presumptive Taxation of 8 per cent on businesses of turnover of up to Rs 40 lakh.

* Service Tax to be extended to lawyers on technical advice.

* Service tax exempted for exporters on select services.

* IT returns to be made simpler, says Mukherjee.

* Govt to extend tax waiver on some exports to March 2010.

Source:  TImes Now

Reblog this post [with Zemanta]

Expectations Budget 2009

July 6, 2009