Clarity in Tax laws, stable tax regime, and Independent judiciary is the underlying theme.
Tax system should reflect best growth – Tax Reform committee to be setup to make system better.
Direct Taxes
Little room to raise tax levels. Prudence and Patience.
NO CHANGE IN TAX SLABS
Tax Credit of Rs 2000 for people in 2 Lakh to 5 Lakh
Education Cess to stay at 3%
Home loan interest exemption of 1 lakh, If limit is not exhausted it can be carried to next year.
Donations to National Children’s fund – 100 % deduction
Concessional tax rate of Dividend received from Foreign Subsidiary to continue.
Duty on Luxury motor vehicles – 100%
On bikes – 75%
Yachts – 25%
Baggage rules – Duty Free limit for Gold – 50000/- for male and 10000 for Female.
10% surcharge for Super rich for income > 1 Crore.
Peak Customs and Excise rates unchanged.
Increase in Specific excised duty of Cigarettes.
SUVs to pay higher tax – Excise duty to 30% for non taxi SUV
Duty on Marble hiked to Rs 60 per Sq m
Service Tax
Only 2 new service tax aspects in the negative list – Vocational Courses will be exempt from Service tax.
Full exemption of Service tax only to films exhibited in Theatres.
Service tax on all air conditioned restaurants.
Reduced rate of abatement for high cost houses to 70%
Service tax payment to be encouraged – One time scheme announced. Interest and Penalties to be waived for non payers.
Direct Taxes – 13300 Crore collection