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Highlights related to Taxation..!

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There was once more mixed approach towards the taxation factor in the budget 2008. FM proposals in his budget says it as "promise for a tax payer friendly regime" comes with following Taxation highlights:

Direct Taxes:

  1. Personal Taxation Slabs Changed
  2. Exemption Limit Increased To Rs 1,50,000 From Rs 1,10,000.
  3. Tax Exemption For Women: Rs 180000
  4. Tax Exemption For Senior Citizens: Rs 225000
  5. Every Income Tax Assessees To Get Relief Of Minimum Of Rs 4,000.
  6. New Tax Slabs Will Be: 10 Per Cent For Rs 1,50,000 To Rs 3,00,000, 20 Per Cent For Rs 3,00,000 To Rs 5,00,000 And 30 Per Cent Above Rs 5,00,000.
  7. For Women, The Income Tax Limit Goes Up From Rs 1.45 Lakh To Rs 1.80 Lakh. In Case Of Senior Women Citizens, It Increases From Rs 1.95 Lakh To Rs 2.25 Lakh.
  8. No Change In Rate Of Surcharge.
  9. No Change In Corporate Income Tax.
  10. Short Term Capital Gains Tax Increased To 15%
  11. Securities Transaction Tax Is A Deductible Expenditure From Now On
  12. Commodities Transaction Tax Imposed At The Same Rate At The Stt
  13. Commodities Transaction Tax To Be Introduced On The Lines Of Securities Transaction Tax.
  14. Fresh Facilities, Encouragement To Sports And Guest Houses Exempted From Fringe Benefit Tax.
  15. Five Year Tax Holiday For Promoting Cultural Tourism.
  16. Five Year Tax Holiday For Setting Up Hospitals In Tier Ii And Tier Iii Regions For Providing Healthcare In Rural Areas From April 1, 2008.
  17. Banking Cash Transaction Tax Withdrawn From April 1, 2009.

Indirect taxes:

  1. Customs Duty: No Change In Peak Rate Of Customs Duty
  2. However, Customs Duties To Be Reduced On Some Power Projects, Steel Melting Scrap, On Some Life-Saving Drugs.
  3. No Duty On Set-Top Boxes
  4. Convergence Products, Duty Cut From 10% To 5%
  5. Some Sports Goods Raw Materials Exempt From Duty
  6. Helicopter Similators, Customs Duty Cut
  7. Customs Duty Exemption On Naphtha Withdrawn, Execpt For That Used For Making Fertilizers
  8. Excise Duties: General Cenvat Rate Cut On All Goods From 16% To 14%
  9. Customs Duty On Specified Sports Goods Machinery Down From 7.5 Per Cent To Five Per Cent.
  10. Excise Duty On Small Cars Cut.. Might Become Cheaper
  11. Special Countervailing Duty On Power Imports.
  12. Customs Duty On Specified Sports Goods Machinery Down From 7.5 Per Cent To Five Per Cent.
  13. Customs Duty On Specified Life Saving Drugs Reduced From Ten Per Cent To Five Per Cent.
  14. No Excise Duty On Wireless Data Cards, Composting Machines
  15. Duty Withdrawn On Naptha For Production Of Polymers.
  16. No Change In Peak Rate Of Customs Duty For Non Agriculture Imports.
  17. Excise Duty On Two-Wheelers Cut From 16% To 12%
  18. Cigarettes To Be Taxed More
  19. Duty On Non Filter Cigarettes To Be Raised.
  20. Duty On Crude And Unrefined Sulphur Reduced From Five To 2 Per Cent To Help Raise Domestic Fertiliser Production.
  21. Excise Duty On Small Cars Reduced To 12 Per Cent From 16 Per Cent And Hybrid Cars To 14 Per Cent.
  22. General Centvat On All Goods To Be Reduced From 16 Per Cent To 14 Per Cent.
  23. Excise Duty Reduced From 16 Per Cent To Eight Per Cent On All Pharmaceutical Goods Manufacture.
  24. Threshold For Small Service Providers Raised From Rs 8 Lakh To Rs 10 Lakh.
  25. Asset Management Service Under Mutual Funds, Services By Stock Exchanges To Be Brought Under Services Tax Net.
    Excise Duty Reduced From 16 To 8 Per Cent On Water Purification Items.
  26. Central Sales Tax Cut To 2% From 3%

Source: Relyon | Back to Budget Page

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