- Personal income tax exemption limit has been increased for small and marginal taxpayers and senior citizens. The personal income tax exemption limit for senior citizens has gone up by Rs15,000, from Rs 2.25 lakh to Rs 2.40 lakh.
- For women, the exemption limit has been raised by Rs 10,000 — from Rs 1.80 lakh to Rs 1.90 lakh. For all other categories of individual players, the personal income tax limit has been raised by Rs 10,000 from Rs 1.50 lakh to Rs 1.60 lakh.
- The 10 per cent surcharge on personal income tax has been removed.
- The Fringe Benefit Tax has been abolished.
- The rate of Minimum Alternate Tax (MAT) has been increased to 15 per cent of book profits from the present rate of 10 per cent.
- Donations to electoral trusts will be allowed as a 100 per cent deduction in the computation of the income of the donor.
INDIRECT TAXES: CUSTOMS DUTIES
- Customs duty on gold bars and gold coins has gone up from Rs 100 per 10 gram to Rs 200 per 10 gram. On other forms of gold, the duty has gone up from Rs 250 per 10 gram to Rs 500 per gram.
- Customs duty on silver has doubled from the current Rs 500 per kg. The rate increase will also be applicable when gold and silver (including ornaments) are imported as personal baggage.
INDIRECT TAXES: CENTRAL EXCISE
- In the automobile sector, excise duty applicable on large cars, utility vehicles of engine capacity 2,000 cc and above has been reduced from Rs 20,000 per vehicle to Rs 15,000 per vehicle
- Duty on petrol driven trucks and lorries has been reduced from 20 per cent to 8 per cent.
SERVICE TAX
- Service tax will be levied on advice, consultancy or technical assistance provided in the field of law.
- Service tax will be levied on cosmetic and plastic surgery services.