HIGHLIGHTS OF UNION BUDGET 2010

1. IT SLAB RATE FOR INDIVIDUALS REVISED:

i) General tax payer

Up to Rs 160,000 - NIL

Rs 160,001 to Rs 500,000 - 10 per cent

Rs 500,001 to Rs 800,000 - 20 per cent

Rs 800,001 and above - 30 per cent

ii) For women

Up to Rs 190,000 - NIL

Rs 190,001 to Rs 500,000 - 10 per cent

Rs 500,001 to Rs 800,000 - 20 per cent

Rs 800,001 and above - 30 per cent

iii) For senior citizens of 65 years & above

Up to 240,000 - NIL

Rs 240,001 to Rs 500,000 - 10 per cent

Rs 500,001 to Rs 800,000 - 20 per cent

Rs 800,001 and above - 30 per cent

2. Additional Deduction u/s 80C : Rs. 20,000/-for Investment in Infrastructure
Bonds , in addition to existing limit of Rs.1,00,000/ - .

3. Corporate Assesses : Surcharge reduced to 7.5%

4. Minimum Alternate Tax : Rate : 18% of Book profit.

5. Limit for Turnover for Compulsory Audit u/s 44AB increased
    To Rs. 60,00,000/- for Business and Rs. 15,00,000/- for Professionals.
6. Increase in Weighted deduction for Expenditure towards Research &
    Development activities increased to 200%.

7. New Saral Form -2 proposed for Salaried Assesses.

8. Disallowance u/s 40a for Payment without deduction of tax and remittance –amended – payment can be made before the due date of filing the return of income in order to claim allowance of such expenditure.

9. Conversion of LLP’s into Partnership will not be subject to Capital Gains tax.

10. Charitable Purpose – amended - to provide relief for such institutions carrying on Business or professional income which is below Rs. 10 lacs.

11. INDIRECT TAXES:

 - Excise duty on Non-petroleum goods increased to 10%

 - Duty on Petrol, Diesel increased - Rs. 1 / litre.

 - Duty o Cigar, cigarettes etc. increased

 - Duty on Cars, SUVs increased by 2 %

 - Duty on Fluorescent lamps (CFL) and LED reduced to 4%

 - No change in Service tax rate - 10% retained

 - New services added in the tax net.

12. Direct Tax Code and Goods and Services Tax likely to be effective from 01.04.2011.


13. Fiscal deficit at 5.5% of GDP.


14. In addition to Bengaluru, CPC 2 more centres are proposed to process returns.