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Direct Taxes

threshold limit for all assessees increased by Rs. 10,000. 80D medical relief increased to Rs. 15000.

Surcharge on IT removed for SMEs with income of 1 Crore or less.

5 year IT holiday on 2,3,4 star hotels in Delhi, NCR for Commonwealth Games.

Effective corporate tax rate is 19%. MAT to be applicable to certain companies.

VC funds will get pass through status in biotech, IT, nanotech, seed research and devpt, pharma research, poultry, biofuels, hotels & convention centres.

(..furore in house..)

Capital Gains tax on certain works of art.

Tax on dividends raised to 15%. FBT on ESOPS.

Additional Education Cess of 1% on ALL TAXES for secondary education and implementing reservations.

Tax proposals

Gross Tax revenues have grown by 20% last year. Tax GDP ratio at 11%.

Customs Duty

Peak rate for non agri products reduced to 12.5 to 10%. Chemicals down to 7.5%.

Fully exempt coking coal, regardless of ash content. Gem and jewelry reduced to 3%.

Irrigation equipment reduced to 5%. Medical equipment reduced to 5%.

Import duty of 3% on private aircraft. CVD and additional customs duty also applicable.

No change in general CENVAT rate or service tax rate.

Biodiesel fully exempt from exise duty.

Water purification devices fully exempt.

Cement excise duty reduced to 350 / metric ton only for cement sold at a price of Rs. 190.

Excise duty on cigarettes increased by 5%. Excise duty on beedis applied.

Exemption increased from 4 lakh to 8 lakh for small service providers.

Service tax on services involved in a Works Contract.

Technology business incubators to be exempt from service tax.

Clinical drug trials exempt. Telecom content providers exempt.

Govt to acquire RBI’s shares in SBI for 40,000 crore.

Report on making Mumbai a regional financial centre to be made public, consensus to be obtained on major recommendations.

Vocational education mission to be started, public-private partnership tapped. Initial funding 50 crore.

Disabled persons employment to be rewarded by government. EPF and ESI employer contributions to be refunded for the first three years.

GB Pant University and TN Agri University to be given Rs. 50 crore as special grant.

VAT revenues of implementing states have increased by 13%. CST to be phased out. CST to be reduced from 4% to 3% from April 1.

Revenue deficit reduced by 0.1% as expected.