Direct Taxes Stability in tax
rates aimed - No change in rates of personal or corporate
tax.
Income Tax exemption limit raised
to Rs.50,000.
Standard deduction for salary upto
Rs.1 lakh, raised to Rs.25,000. No standard deduction for
salary above Rs.5 lakhs.
Simplification
SARAL,
a one page return form for all non-corporate tax
payers.
Loss from house
property to be allowed adjustment against salary
income at source.
Limits for
compulsory maintenance of accounts raised.
Levy of Gift
tax discontinued; gifts to be taxed in the hands of
donees under I.T. Act.
Measures to reduce litigation and
realise arrears
SAMADHAN,
a scheme for quick realisation of tax arrears and
settlement of income/corporation tax disputes - pay
30% (or 35%) and patch up.
Direct appeals
to High Courts.
Scope of
Authority for Advance Rulings extended.
Other social welfare measures
Special
deduction for companies for generating additional
employment.
100% deduction
to approved activities for promoting women and child
welfare, road safety and improvement of environment.
Relief measures for film industry.
Rationalisation measures
Specified
business reorganisations to be exempt from capital
gains tax; carry forward of loss and unabsorbed
depreciation allowed.
Stock lending
exempted from capital gains tax.
SAMMAN - a scheme to
recognise and incentivise honest tax payers.
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