29) Technical - Update me as to Union Budget 2009-10 w.r.t. Direct Taxes

Wednesday, July 8, 2009

Hint:

PERSONAL INCOME TAX

 Exemption limit raised for :-
> Senior citizens – from Rs. 2.25 lakhs to Rs.2.40 lakhs
> Women – from Rs. 1.80 lakhs to Rs. 1.90 lakhs
> Other Individual tax payers – from Rs. 1.50 lakhs to Rs. 1.60 lakhs

 10% surcharge on personal income tax phased out

 Deduction u/s 80DD Rs.75,000 to Rs.1 lacs in respect of maintenance, including medical treatment, of a dependent who is a person with severe disability.


CORPORATE TAX

 No change in corporate tax

 Abolished :-
> FBT (Fringe Benefit Tax) w.e.f. AY 2010
> Commodity Transaction Tax

 Basic Limit increased :-
> MAT (Minimum Alternate Tax) hiked from 10% to 15% and Tax credit carry forward raised form 7 to 10 years
> Advance Tax exemption from Rs.5,000/- to Rs.10,000/-
> Wealth Tax exemption from Rs. 15 lacs to Rs. 30 lacs.
> Transportation Tax rate from Rs. 3,500 to 5,000 for Heavy Goods Vehicle Rs. 3150 to Rs. 4500 for Light Goods Vehicle.
> Sun-set clauses for deduction u/s 10A and 10B in respect of export profits extended by one more year i.e. for the financial year 2010-11.

 TDS Rates reduced :-

> Rent u/s 194I on use of :-
• machinery or plant or equipment reduced from 10% to 2%
• land, building, furniture, fittings reduced to 10%

> Contract u/s 194C for payment to :-
• to an individual or HUF to be 1%
• to other than above to be 2%

 What’s more :-
> New Pension System Trust exempted from STT, DDT
> Tax holiday on petro sector extended to natural gas
> IT returns to be made simpler
> LLP (Limited Liability Partnership) included in the definition of Firm

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