TAX RATES

The basic exemption limit is proposed to be increased from Rs.1,10,000/- to Rs.1,50,000/-. Accordingly, the new rates of income tax on total income in such cases shall be as under:

• Up to Rs. 1,50,000 -                  NIL
• Rs.1,50,001 to Rs.3,00,000 -    10%
• Rs.3,00,001 to Rs.5,00,000 -    20%
• Above Rs. 5,00,000 -               30%
• In case of women assesses, basic exemption limit shall be Rs. 1,80,000/- and in case of senior citizens, it shall be Rs. 2,25,000/-
• Corporate Tax Rates remain unchanged
• The rate of tax on Short Term Capital Gains u/s 111 A is increased from 10% to 15%.
• Any transfer of a capital asset in a transaction of reverse mortgage shall not be chargeable to capital gains. The lump sum amount or installment received under reverse mortgage is to be treated as a capital receipt and not as a income chargeable to tax.
• The amount paid towards securities transaction tax (STT) shall be allowed as expenditure while computing income under the head “Profits and Gains of Business”. Accordingly, no rebate under section 88 E would be allowable in respect of the securities transaction tax paid for the assessment year 2009-10.
• A new tax called Commodities Transaction Tax (CTT) to be levied on taxable commodities transactions including sale or purchase of commodity derivatives entered in a recognized commodities exchange. The Commodities Transaction Tax is allowed as a deduction under the head Profits and Gains of Business or Profession.
• Deferred Tax Liability or any provision thereof and Dividend Distribution Tax under section 115O and 115R shall be added back for computation of Book Profits under section 115JB
• No Change in Surcharge and Education Cess rates