Indian Income 2007
PERSONAL INCOME TAX
|For Individual & H.U.F.|
|Rs. 1 upto 1,10,000||Nil|
|Rs. 1,10,001 upto 1,50,000||10%|
|Rs. 1,50,001 upto 2,50,000||20%|
|Rs. 2,50,001 onwards||30%|
|Rs. 1,45,001 upto 1,50,000||10%|
|For Senior Citizen|
|Rs. 1,95,001 upto 2,50,000||20%|
10% surcharge on Income above Rs. 10,00,000 & above. Education cess 3% on (Tax + Surcharge).
HIGHLIGHTS OF BUDGET
- No change in personal or corporate rate of income tax.
- One-by-six scheme abolished.
- MAT raised from 7.5 per cent to 10 per cent.
- STT raised by 25 per cent.
- Section 80C to cover fixed deposits of 5 years and more with a scheduled bank.
- Section 80-IA benefit extended till 31-03-2010 for power sector.
- Changes in section 54EC to restrict it to two institutions, section 10(23G) and 54ED withdrawn.
- PAN to be made complusory for some more transactions.
- Value of fringe benefit on tour and travel to be taken as 5 per cent instead of 20 per cent. For hotel boarding and lodging similar reduction is there is some cases. Expenses on brand ambassadors and celebrity endorsements excluded; only a contribution to approved superannuation fund by employer, in excess of Rs. 1 lakh per employee, will attract FBT.
Under Section 80C & 80CC: Deduction upto Rs. One lakh shall be allowed in respect of payment towards Life Insurance Premium, Contribution towards P.F., P.P.F., N.S.C., expenditure on Education of children, Repayment of housing loan & investment in eligible issue of capital & fixed deposits of 5 year & more with a scheduled bank.
Under Section 80D: Mediclaim insurance upto Rs. 10,000.
Under Section 80G: General Deduction is 50% of amount Donated to approved institutions.
The general rate of depreciation on plant & machinery is reduced to 15% from 25%, for furniture and fittings to 10% from 15%, for motor cars to 15% from 20%, for motor buses and lorries to 30% from 40%, rubber moulds to 30% from 40% and ships to 20% from 25%. The rate of initial depreciation is increased to 20%.
FRINGE BENEFITS TAX ON COMPAIES (FBT)
Individual, HUF, Charitable institutions and Trusts are exempted.
Expenses on advertising have been exempted from FBT.
20% chargeable on entertainment, publicity, sales promotion, hotel, boarding and lodging, use of telephone and mobiles, Repair, running and maintenance of vehicles.
5% chargeable on tour, travel & hospitality.
50% chargeable on Festive celebrations, Gifts, use of club facilities, conference, use of health club, sports and similar facilities and scholarship to the children of employees.
CASH WITHDRAWALS TAX
|On Saving Accounts||:||Nil|
|On Current Account of companies and firms||:||Exempt up to Rs. 1 lac in a single day|
|On Current Account of individual and HUF||:||Exempt up to Rs. 50,000 in a single day|
Service tax rate raised from 12% plus education cess 3%. Small service provides whose gross annual turnover is less than Rs. 8 lacs are exempt from service tax. Few more services are come under the list service tax list.