Simple Tax Regime, Simple Tax Structure, FBT & CTT abolished, Lawyers to pay Service Tax, Corporate Tax remain unchanged.
Encouraging to cut down poverty by 2014 and add 12 million jobs each year, Finance Minister Pranab Mukherjee presented India’s budget for this fiscal that hikes income tax exemption limit and moves up measures for welfare schemes and infrastructure.
The income tax exemption limit for senior citizens was looked for to be increased by Rs 15,000, while that for women and others was stamped by Rs 10,000. The 10 per cent surcharge on personal income tax also sought to be removed in union budget 2009.
Simple tax regime in four years promised
Finance Minister Pranab Mukherjee Monday promised to revamp the country’s tax structure, with a simple and exemption-free regime in four years.
This is in line with the government’s stated agenda of a new income tax code to simplify the tax structure that is replete with exemptions and complex provisions.
Tax reforms to be expedited A new direct tax code will be introduced in 45 days and bring changes in the indirect tax structures, the Finance Minister, Pranab Mukherjee, said while presenting the union budget for 2009-10 in the Lok Sabha. Reiterating his commitment to expedite tax reforms, Mukherjee also said he would aim to introduce the goods and services tax by the initial deadline of April 10, 2010.
Tax structure to be simplified: Mukherjee
The government will work towards simplifying the tax structure in the next four years, Finance Minister Pranab Mukherjee said while presenting the union budget for 2009-10 in the Lok Sabha Monday.
The income tax department has also been asked to introduce the simplified version of the tax filing form Saral, called Saral 2.
Corporate Tax Kept Unchanged
The corporate tax rate was kept unchanged, even as the finance minister sought to reduce the burden on industry by abolishing the commodities transaction tax, but hiked the minimum alternate tax to 15 per cent of book profits.
Fringe Benefit Tax to be Abolished
Mukherjee also promised to scrap the fringe benefit tax to please corporates, introduce a pan-India goods and services tax from April next year and gave 100 per cent tax deductions to political donations.
Dressed in a smart white bandgala suit, the 73-year-old politician – who had presented his last budget as finance minister in the government of prime minister Indira Gandhi 25 years ago – said the United Progressive Alliance (UPA) government would push forward an agenda that will ensure 12 million new jobs each year and reduce poverty by half by 2014.
Lawyers to pay service tax from now Finance Minister Pranab Mukherjee brought lawyers under the ambit of service tax in the union budget for 2009-10. “I propose to bring certain legal services under the ambit of service tax,” said Mukherjee.
Unique Identification Plan
The finance minister also said the unique identification plan, approved by the previous UPA government will be operational in 12-18 months and the process begin to hand over biometric smart cards to 1.17 billion citizens.
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{ 4 comments… read them below or add one }
Once again it is proved that tax relief are provided to the upper class only. Person earing above 3 Lacs will be saving 1.90 lacs whereas person earing below 3 Lacs have to pay the same amount of tax. The minimum threshhold limit should be increase.
Correction:
The tax saving by the upper class will be 1.20 lacs.
Does the “Simplified Tax Code” have simplified “EXCESS TAX PAID REFUND SYSTEM” for automatically CREDITING the BANK ACCOUNTS OF ASSESSEES?
Will the FM “guarantee” that all those assessees claiming IT REFUNDS for earlier periods (not having received the same for over 7-8 years)???
Will the nex DIRECT TAX CODE so hyped by the FMinistry do the needful for this problem faced by individual Tax Payers?
Why not make a mandatory WEB-SITE and email for ALL IT-REFUND CLAIMS to be compulsorily RESPONDED by the GOI FM???
Opinion on tax structure and slabs are immaterial. The process should be simplified not the the form to be filled should be simplified. Assessing officer should not and must not enjoy Judicial as well as executive powers. The judicial power must be stripped from them same way as it was done by Late Mrs. Indira Gandhi by stripping IAS officers of judicial powers in 1972. Also govt should clarify what was the basis and parameters of adjudging exemption limits.