Tax Guru

Union Budget 2009-10 Highlight on Direct & Indirect Taxes

Jul 6, 2009 Government Policy

• Service tax levied on law firm
• Custom duty on gold re-imposed
• Customs duty to be reduced on drugs for heart treatment
• No new tax on edible oil imports
• 4 per cent excise duty on cotton products restored
• Customs duty on bio-diesel reduced
• Life saving devices on heart condition exempted from custom duty
• Small business exempt from advance tax
• To maintain overall customs and excise duty structure
• Tax holiday to natural gas extended
• Tax slab raised
• MAT hiked to 15 per cent of book profit
• Commodity transaction tax abolished
• New pension scheme
• Tax holiday for exporters extended untill 2012
• Personal income tax exemption hiked by Rs 10,000
• Abolish fringe benefit tax
• Tax holiday extended for textile units
• Goods and services tax from April 1, 2010
• Share of direct taxes has increased to 56 per cent in 2008-09.
• Federal Tax/GDP ratio is 11.5 per cent
• No surcharge of 10 per cent on personal income tax
•  Increase in exemption slab for senior citizen
• No change in corporate taxes
• Hike in IT exemption for women to Rs 1,90,000
• Govt committed to tax reforms
• Increase automation in direct tax collection
• New tax code in 45 days
• Centralised processing center at Bengalooru to streamline taxation
• Income tax forms should be user friendly
• Tax system should be such that it should encourage voluntary compliance
• Saral form 2 will be introduced
• Customs duty on bio-diesel reduced.
• Silver to cost more.
• Tax to be levied on Law Firms. 
• Textile units to receive tax holiday.
• LCD TVs to cost less. Custom duty on LCD TVs cut from 10% to 5%.
• Set-Top Boxes to cost more.
• Customs duty of 5% on set-top boxes.
• To extend tax holiday for commercial production of mineral oil and natural gas.
• Fringe Benefit Tax abolished.
• Commodity Transaction Tax abolished.
• Personal income tax exemption hiked by Rs 10,000.
• No surcharge of 10% on personal income tax.
• Centralised processing center at Bengalooru to streamline taxation.
• No change in corporate tax.
• Increase in exemption slab for senior citizens by Rs 15,000.  

Tags: Budget, Budget Highlights, Change in tax provisions in budget, Highlight on Direct & Indirect Taxes, Service tax on Law Firms