room to give away tax revenues or raise tax rates in a constrained economy.
case to revise either the slabs or the rates of Personal Income Tax. Even a moderate
increase in the threshold exemption will put hundreds of thousands of Tax
Payers outside Tax Net.
relief for Tax Payers in the first bracket of `2 lakhs to ` 5 lakhs. A tax credit
of ` 2000 to every person with total income upto `5 lakhs.
- Surcharge of 10percent on persons (other than
companies) whose taxable income exceed ` 1 crore to augment revenues.
surcharge from 5 to 10 percent on domestic companies whose taxable income
exceed ` 10 crore.
case of foreign companies who pay a higher rate of corporate tax, surcharge to increase
from 2 to 5 percent, if the taxabale income exceeds ` 10 crore.
all other cases such as dividend distribution tax or tax on distributed income,
current surcharge increased from 5 to 10 percent.
surcharges to be in force for only one year.
cess to continue at 3 percent.
premium rate increased from 10 percent to 15 percent of the sum assured by
relaxing eligibility conditions of life insurance policies for persons suffering
from disability and certain ailments.
made to schemes of Central and State Governments similar to Central Government
Health Scheme, eligible for section 80D of the Income tax Act.
made to National Children Fund eligible for 100 percent deduction.
allowance at the rate of 15 percent to manufacturing companies that invest more
than ` 100 crore in plant and machinery during the period 1.4.2013 to
date’ for projects in the power sector to avail benefit under Section 80- IA
extended from 31.3.2013 to 31.3.2014.
rate of tax of 15 percent on dividend received by an Indian company from its
foreign subsidiary proposed to continue for one more year.
Trust to be exempted from Income Tax. Tax to be levied at specified rates only
at the time of distribution of income for companies, individual or HUF etc. No
further tax on income received by investors from the Trust.
Protection Fund of depositories exempt from Income-tax in some cases.
in taxation between IDF-Mutual Fund and IDF-NBFC.
Category I AIF set up as Venture capital fund allowed pass through status under
at the rate of 1 percent on the value of the transfer of immovable properties where
consideration exceeds ` 50 lakhs. Agricultural land to be exempted.
final withholding tax at the rate of 20 percent on profits distributed by
unlisted companies to shareholders through buyback of shares.
to increase the rate of tax on payments by way of royalty and fees for technical
services to non-residents from 10 percent to 25 percent.
made in rates of Securities Transaction Tax in respect of certain transaction.
to introduce Commodity Transaction Tax (CTT) in a limited way. Agricultural
commodities will be exempted.
provisions of GAAR will come into effect from 1.4.2016.
on Safe Harbour will be issued after examing the reports of the Rangachary Committee
appointed to look into tax matters relating to Development Centres & IT
Sector and Safe Harbour rules for a number of sectors.
large tax payer unit to open at Kolkata shortly.
- A number of administrative measures such as extension of refund banker system to refund more than ` 50,000, technology based processing, extension of e-payment through more banks and expansion in the scope of annual information returns by Income-tax Department.