25 August 2008
1.1 For Individuals and H.U.F. : For assessment 2009 - 10 the finance minister has proposed to give substantial relief to all categories of Individual tax payers and H. U. F. He has proposed to revise the tax slabs upwards as under: Income Slab Tax rate Upto Rs. 150,000/= No tax Rs.150,001/= to Rs.300,000/= 10% Rs.300,0001/= to Rs.500,000/= 20% Above Rs.500,000/= 30% However, in case of a woman assessee, resident in India and below 65 years of age at any time during the previous year, a higher basic exemption limit of Rs. 1,80,000=00 will be applicable for assessment year 2009-2010. Similarly, for a senior citizen i e. every individual resident in India who is of the age of 65 years or more at any time during the previous year, a higher basic exemption limit of Rs. 2,25,000=00 will be applicable for assessment year 2009- 2010. 1.2 For Companies and Partnership Firms: No change has been proposed in the tax rates applicable to Companies, Partnership Firms and Cooperative societies. 2 1.3 Tax on Dividend / Income Distribution by Companies / Mutual Funds: The finance minister has continued the levy of 15% Tax on Dividend / Income Distribution by companies / mutual funds. However, he has proposed to give set-off of dividend received by a domestic holding company from its subsidiary company (in other words, the old section 80M is re-introduced indirectly). 1.4 Surcharge and Cess; The scheme of levy of surcharge of levy on all categories of tax payers is continued without any change therein for assessment year 2009-2010. Like wise, the finance minister has also continued the levy of Education Cess @ 2% and Secondary and Higher Education Cess @ 1% for assessment year 2009- 2010.
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