Budget 09 sec. wise

Jitender Garg (Article(FINAL YR Pass Out)) (863 Points)

11 March 2008

HIGHLIGHTS OF BUDGET 2008-09

DIRECT TAXES

Income Tax Rates

TAXABLE INCOME SLAB (IN Rs.)

For Assessment Year 2009-2010

General

Women

Senior Citizen

Tax Rate (In %)

(a) 0 – 1,50,000 0 – 1,80,000 0 – 2,25,000 Nil

(b) 1,50,001 - 3,00,000 1,80,001 - 3,00,000 2,25,001 – 3,00,000 10%

(d) More than 5,00,000 More than 5,00,000 More than 5,00,000 30% + (c) above

�� No changes in Surcharge.

�� The above Annual Taxable Income is subject to Certain Deductions (80C to 80U) &

Exemptions under the Income Tax Act 1961.

Following investment are also covered under purview of Section-80C :-

a) Senior Citizen Saving Scheme 2004

b) Five year Time Deposit in an account under the Post Office Deposit Rules 1981

Section 80D

�� Additional Deduction of Rs.15,000/- allowed to an individual paying Medical

Insurance Premium for his/her parents.

Section 80IB

�� 5 years tax holiday to hospitals in any place outside the urban agglomerations

especially in tier-2 and tier-3 towns. Applicable for the period 1st April, 2008 to 31st

March, 2013.

Section 80 ID

�� 5 years tax holiday to two, three or four star hotels established in specified districts

having UNESCO declared “World Heritage Sites”. Applicable if hotels constructed

during the 1st April, 2008 to 31st March, 2013.

KEY FEATURES :-

�� Corporate Debt Instrument issued in DEMAT Form & Listed on Recognised Stock

Exchanges exempted from TDS.

�� Creche facilities, Sponsorship of an employee organizing sports events for

employees & Guest Houses excluded from FBT.

�� Rate of tax on STCG in case of sale of securities is now being increased to 15% from

10%.

�� Securities Transaction Tax to be allowed as deductible expenditure against Business

Income and rebate u/s 88E withdrawn w.e.f. 1st April 2009.

�� Commodities Transaction Tax to be introduced on option & future.

�� Banking Cash Transaction Tax (BCTT) withdrawn w.e.f. 1st April 2009.

�� Due date of filing Audited Returns u/s 139 (1) and FBT Returns changed to 30th

September instead of 31st October.

INDIRECT TAX

Excise Duty

�� General CENVAT rate on all goods reduced from 16% to 14%.

Service Tax

�� Four services brought under service tax :-

1. Asset management service provided under ULIP

2. Services provided by Stock / Commodity exchange & clearing houses.

3. Right to use goods in case where VAT is not payable

4. Customized Software.

�� Exemption to SSP’s increased to Rs.10 lakhs from Rs.8 lakhs.

�� Limit for obtaining Service Tax Regn. No. increased to Rs.9 lakhs from Rs.7 lakhs.

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Budget 09 sec. wise

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Originally posted by :Jitender
"	HIGHLIGHTS OF BUDGET 2008-09 DIRECT TAXES Income Tax Rates TAXABLE INCOME SLAB (IN Rs.) For Assessment Year 2009-2010 General Women Senior Citizen Tax Rate (In %) (a) 0 – 1,50,000 0 – 1,80,000 0 – 2,25,000 Nil (b) 1,50,001 - 3,00,000 1,80,001 - 3,00,000 2,25,001 – 3,00,000 10% (c) 3,00,001 - 5,00,000 3,00,001 - 5,00,000 3,00,001 – 5,00,000 20% + (b) above (d) More than 5,00,000 More than 5,00,000 More than 5,00,000 30% + (c) above �� No changes in Surcharge. �� The above Annual Taxable Income is subject to Certain Deductions (80C to 80U) & Exemptions under the Income Tax Act 1961. Following investment are also covered under purview of Section-80C :- a) Senior Citizen Saving Scheme 2004 b) Five year Time Deposit in an account under the Post Office Deposit Rules 1981 Section 80D �� Additional Deduction of Rs.15,000/- allowed to an individual paying Medical Insurance Premium for his/her parents. Section 80IB �� 5 years tax holiday to hospitals in any place outside the urban agglomerations especially in tier-2 and tier-3 towns. Applicable for the period 1st April, 2008 to 31st March, 2013. Section 80 ID �� 5 years tax holiday to two, three or four star hotels established in specified districts having UNESCO declared “World Heritage Sites”. Applicable if hotels constructed during the 1st April, 2008 to 31st March, 2013. KEY FEATURES :- �� Corporate Debt Instrument issued in DEMAT Form & Listed on Recognised Stock Exchanges exempted from TDS. �� Creche facilities, Sponsorship of an employee organizing sports events for employees & Guest Houses excluded from FBT. �� Rate of tax on STCG in case of sale of securities is now being increased to 15% from 10%. �� Securities Transaction Tax to be allowed as deductible expenditure against Business Income and rebate u/s 88E withdrawn w.e.f. 1st April 2009. �� Commodities Transaction Tax to be introduced on option & future. �� Banking Cash Transaction Tax (BCTT) withdrawn w.e.f. 1st April 2009. �� Due date of filing Audited Returns u/s 139 (1) and FBT Returns changed to 30th September instead of 31st October. INDIRECT TAX Excise Duty �� General CENVAT rate on all goods reduced from 16% to 14%. Service Tax �� Four services brought under service tax :- 1. Asset management service provided under ULIP 2. Services provided by Stock / Commodity exchange & clearing houses. 3. Right to use goods in case where VAT is not payable 4. Customized Software. �� Exemption to SSP’s increased to Rs.10 lakhs from Rs.8 lakhs. �� Limit for obtaining Service Tax Regn. No. increased to Rs.9 lakhs from Rs.7 lakhs.	"