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
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