• Tax rates kept unchanged. Slab rates are changed.

• Basic IT exemption limit retained at Rs. 1,60,000.

• For Women (below 65 years): Exemption limit retained at Rs.1,90,000

• For all Senior Citizens for men/women of age 65 and above):
  Exemption limit retained at Rs. 2,40,000

Income Tax Rates applicable for Financial Year 2010-2011.

• Individuals / HUFs receiving immovable  property exceeding stamp valuation of  Rs.50,000/- after October 1, 2009 at  lower than stamp valuation by  Rs. 50,000 would be taxed as gifts.

• Individuals / HUFs receiving bullion (gold ,sliver and other precious metals) on/after June 1, 2010 would be taxed as gifts.

• The return filing form for salaried  individual/s is in a simplified form,  i.e.Saral -II.

• eTDS certificates would continue to be issued by the tax deductor and maintained by the taxpayer.

• TDS threshold limits for various items, such as rent, lottery/horse race winnings, brokerage etc. have been hiked.

• In case where tax was deducted but not deposited within the due date, the payment was disallowed for that financial year. It was allowed in the year of actual deposit of tax. Now deduction can be claimed for that Financiel Year” if taxes are deposited within due date or date of filing of returns, whichever is earlier.

• Interest for Non-Deduction of taxes shall be at 1% & that for delay in depositing taxes deducted shall be l.5% per month.

• The threshold limit for TDS for rental  income has been increased from  Rs.1 20,000 to Rs. 1,80,000.

• Deduction of an additiona’Rs. 20,000 allowed over and above the limit of Rs.1 lac on tax savings for investment in long term infrastructure bonds u/s  8OCCF.

• Surcharge on domestic companies is reduced from 10 to 7.5%
  

• Minimum Alternate Tax (MAT) up from 15% to 18% on book profits of companies
  

• Limit of turnover for the purpose of presumptive taxation of small businesses raised to Rs 60 lakh
  

• Limits for turnover, over which accounts need to be audited raised from 40 lakh to
  60 lakh for businesses and from 10 Iakh to 15 lakh for professionals.
  

• Contribution to Central Govt. Health Scheme is also eligible u/s 80D.

SERVICE TAX IS BEING IMPOSED ON THE ) FOLLOWING SPECIFIED SERVICES:

1,         Service of permitting commercial use or exploitation of any event organized by a person or organization.

2.         The existing taxable service ‘Intellectual Property Right (IPR)’ excludes copyright from its scope. Copyrights on

(a)       Cinematographic films and

(b)       Sound recording are being brought under the ambit of service tax. However, copyright on original literary, dramatic, musical and artistic work would continue to remain outside the scope of service tax.

3.         Service Tax on the following health services :

a.         Health check up undertaken by hospitals or medical establishments for the employees of business entities; and

b.         Health services provided under health insurance schemes offered by insurance companies.


4.         Service provided for maintenance of medical records of employees of a business entity.

5.         Service/s provided by Electricity Exchanges.

6. Certain additional services provided by a builder to the prospective buyers such as providing preferential location or external or internal development of complexes on extra charges. However, service of providing vehicle parking space would not be subjected to tax.

7. Service of promoting of a brand’ of goods, services, events, business entity etc.

8. The promotion, marketing or organizing of games of chance, including lottery, is  being introduced as a separate service.