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News

Budget Snapshots

Jul 06, 2009

Here is a quick snapshot of how the budget impacts the common man.

 

 

 1. Exemption limit – to be raised as follows.

Category

Exemption Increased By (Rs.)

Zero Tax Status upto (Rs.)

Senior Citizen

15,000

2,40,000

Female

10,000

1,90,000

Male

10,000

1,60,000

 

2. Surcharge – of 10% of total tax to be eliminated.

 

3. Section 80DD Deduction in respect of maintenance & medical treatment of dependants with severe disability – limit to be enhanced from current Rs. 75,000 to Rs. 1,00,000

 

4. Fringe Benefit Tax (FBT) – on fringe benefits provided by employer to employee, to be abolished

 

5. New Pension System (NPS) – Exempt, Exempt, Taxed (EET) method of taxation to continue in the hands of the investor but enhanced tax breaks for the trust managing the NPS to be beneficial to the investor.

 

6. Section 80E Deduction for interest paid on education loans – to be available to all fields of study, including vocational studies pursued after schooling.

 

7.  Donations to electoral trusts – to fetch you 100% deduction against your taxable income.

 

8. Commodities Transaction Tax (CTT) – to be abolished

 

9. Minimized Tax Compliance – for Small business owners. Declare 8% of their turnover as taxable income & avoid maintaining books of accounts & payment of advance tax.

 

10. ITR forms to be made simpler – new i-tax form (Saral – 2) set to make early entry.

 

11. Central Processing Centre (CPC) – of income tax department at Bangalore to process all returns filed electronically and physical returns filed in Karnataka. This would enable faster refunds to assessees.

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