Budget 2009 Income Tax Exemption Increased
Finance Minister of india Pranab Mukherjee said to increase in income tax exemption limit for senior citizens by Rs.15,000, for women and others by Rs.10,000 each,
The exemption limit will now be
Rs.240,000 for senior citizens,
Rs.190,000 for women and
Rs.160,000 for others.
Income tax exemption limit increased, corporate tax rate unchanged
DIRECT TAXATION
- IT Return forms to be more user friendly
- Centralised tax processing centre at Bangalore
- Share of direct taxes gone up by 56%
- New direct tax code in 45 days
- To introduce GST by April 1st, 2010; to be dual in nature
- No changes in Corporate Tax
- Personal income tax exemption limit hiked by Rs.15,000 for senior citizens
- Exemption limit hiked by Rs.10,000 for women and all other categories
- Removal of 10% surcharge on personal income tax
- Fringe Benefit Tax to be abolished
- Tax holiday for exporters increased till 2011
- MAT rate to be increased to 15% v/a 10% of book profit
- Carry Forward MAT Tax Credit extended to 10 yrs from earlier 7 years
- Abolition of Commodity Transaction tax (CTT)
- Sec 80DD to be hiked
- National pension Scheme exempt from STT
“Even the raised exemption limit of Rs 10,000 in personal income tax in Union Budget 2009 on tax regime is hardly any relief given the high prices in the markets, though the abolition of fringe benefit tax is a good step,” Most tax experts says same.
Related posts:
{ 7 comments… read them below or add one }
In the era of libralisation & globlisation , the draft direct tax code , would be strongly welcomed at all levels , like users , assessee , professionals , others .
They have simplified the proceudres and also present it into lucid manner.
These are the follwing comments :-
1. The base of calculation of MAT must be revisit , because the asset base liability would create a lot of financial hardship to some company , resulting the basis to efficient use of asset would be waste, for example , those industry requiring huge capital base / incoming project would be affected .
At the same time, the Mat for new service industry , in the initial year would be lessor.
In the following way, it can be provided in the code it self
Option I
The lower of the follwing would be MAT-
1. MAT liabilty as per current practice /as per IT ACT
or
2. Mat computation as proposed -on % on Asset base .
Option-II
The proposed rate may be reduced .
II. The HRA Deduction for Salaried Personnel must be continued , because it will be hardly effected to Low salary group ,
The Investment range -up to 3.0 Lacs will be not reachable to all, since it is payment based.
Further, since the Deduction for rent to other than salaried person is continue , so , it seems that , if you are not allow the HRA Exemption , it won’t taste the cannon of Equity & justice to all.
In this context , you can impose the Maximum cap of HRA Exemption , in the follwing ways :-
a. For Cosmo/Metro Cities/A-Grade Cities(All State Capital) – Max. 50000 p.m.
b. For Other Cities – Rs.20000 p.m.
III. To promote the taxation regime from EEE To EET, a precaution must be taken with respect to its application , otherwise , therewould be a huge withdrwal from govt fund/ EPF/ Post office / other scheme of Tax saving before 01/04/2011.
It must be clear the date of investment , means , All Tax saving investment made from 01/04/2011 or onwards would be only covered in EET.
Meaningthereby ,
If any investment made before that date and resulting to withdrawl due to maturity / otherwise would be exempt in the hands of employee
For this , the onus to prove such fact would be on the assessee itself.
Sir / madam
I want TDS & Service tax. Rules & Regulation. Challan, return tax rate. Kindly inform Me.
I want to know latest amendments in TDS & Income Tax
I am physically handicapped,state govt employ pl.suggest how shall I calculate my tax
I am physically handicapped,state govt employ pl.suggest how shall I calculate my income tax under 80DD?
I want to know the Tax Exemption Limit for the Year 2010-11.
Regards,
Shanmukha
Thanks to this team, for the give us current information.
From,
Achinta Roy Basunia