Thursday, July 15, 2010



  • Exempt-Exempt-Exempt (EEE) tax regime to continue, but on fewer savings schemes such as the PPF & the new pension scheme. Ulips and equity oriented MFs to lose tax benefits at time of maturity
  • Perquisites will be valued at prescribed rates and not at market linked rates
  • Employer's contributions to provident fund & retirement benefits will be exempt from income tax, subject to monetary limits
  • Interest on home loans up to Rs 1.5 lakh for self occupied houses to be exempt from tax

  • Minimum Alternate tax (MAT) to be levied on book profit of companies & not on gross assets
  • New units commissioned in special economic zones after the code comes into force will not enjoy tax sops
  • Controlled foreign corporation (CFC) rules to be introduced to tax the income of foreign subsidiaries of Indian firms
  • Change in concept of residency to include only those foreign firms whose management take decisions in India

  • Gains from sale of shares & other assets will be added to the total income & the tax payer will be taxed according to slab
  • Tax blow will be softened for investors who sell shares after one year of holding them
  • Securities transaction tax to stay, but will be calibrated with the new capital gains regime 
  • FIIs buying and selling shares will pay capital gains tax, but as advance tax
  • Treaty shopping will end with general anti avoidance rules


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