Saturday, April 17, 2010

Budget 2010 Proposals - Direct Tax

Income tax slabs for individual taxpayers to be as follows :
Income upto Rs 1.6 lakh                                                Nil
Income above Rs 1.6 lakh and upto Rs. 5 lakh    10%
Income above Rs.5 lakh and upto Rs. 8 lakh       20%
Income above Rs. 8 lakh                                              30%

Deduction of an additional amount of Rs. 20,000 allowed, over and above the existing limit of Rs.1 lakh on tax savings, for investment in long-term infrastructure bonds as notified by the Central Government.

Current surcharge of 10 per cent on domestic companies reduced to 7.5%

Rate of Minimum Alternate Tax (MAT) increased from the current rate of 15% to 18%of book profits.

Limits for turnover over which accounts need to be audited enhanced to Rs. 60 lakh for businesses and to Rs. 15 lakh for professions.

Limit of turnover for the purpose of presumptive taxation of small businesses enhanced to Rs. 60 lakh.

If tax has been deducted on payment by way of any expense and is paid before the due date of filing the return, such expenditure to be allowed for deduction.

Interest charged on tax deducted but not deposited by the specified date to be increased from 12% to 18% p.a.

TDS threshold limit from 1st July 2010 :
                                                                                       Existing    Proposed
194B   Winnings from lottery/crossword            5,000      10,000
194BB Winnings from horse race                              2,500       5,000
194C   Payment to Contractors                               20,000*    30,000*
   "                         "                                                          50,000**  75,000**
194D   Insurance Commission                                   5,000     20,000
94H    Commission or Brokerage                               2,500      5,000
194-I Rent                                                               1,20,000   1,80,000
194J Fees for prof./technical services            20,000       30,000

* per transaction
** per annum

No comments:

Post a Comment