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1.
Little room to give away tax revenues
or raise tax rates in a constrained economy.
2.
No 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.
3.
However, relief for Tax Payers in the
first bracket of ` 2 lakhs to ` 5
lakhs. A tax credit of ` 2,000 to every person with total income upto ` 5 lakhs.
4.
Surcharge of 10 percent on persons
(other than companies) whose taxable income exceeds ` 1 crore to augment revenues.
5.
Increase surcharge from 5 to 10 percent
on domestic companies whose taxable income exceed ` 10 crore.
6.
In 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.
7.
In all other cases such as dividend
distribution tax or tax on distributed income, current surcharge increased from
5 to 10 percent.
8.
Additional surcharges to be in force
for only one year.
9.
Education cess to continue at 3
percent.
10. Permissible 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.
11. Contributions made to schemes of Central and State
Governments similar to Central Government Health Scheme, eligible for section
80D of the Income tax Act.
12. Donations made to National Children Fund eligible
for 100 percent deduction.
13. Investment 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 31.3.2015.
14. ‘Eligible date’ for projects in the power sector to
avail benefit under Section 80- IA extended from 31.3.2013 to 31.3.2014.
15. Concessional rate of tax of 15 percent on dividend
received by an Indian company from its foreign subsidiary proposed to continue
for one more year.
16. Securitisation 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.
17. Investor Protection Fund of depositories exempt
from Income-tax in some cases.
18. Parity in taxation between IDF-Mutual Fund and
IDF-NBFC.
19. A Category I AIF set up as Venture capital fund
allowed pass through status under Income-tax Act.
20. TDS 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.
21. A final withholding tax at the rate of 20 percent
on profits distributed by unlisted companies to shareholders through buyback of
shares.
22. Proposal 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.
23. Reductions made in rates of Securities Transaction
Tax in respect of certain transaction.
24. Proposal to introduce Commodity Transaction Tax
(CTT) in a limited way.
25. Agricultural commodities will be exempted.
26. Modified provisions of GAAR will come into effect
from 1.4.2016.
27. Rules 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.
28. Fifth large tax payer unit to open at Kolkata
shortly.
29. 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.
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