Chapter 1 – Budget Highlights
Direct Tax Individuals and HUFs
1. Tax slabs for individuals extended
2. Business assets out of deemed gifts
3. Deduction in respect of investment in long-term infrastructure bonds Corporates
4. Surcharge decreased from 10 per cent to 7.5 per cent
5. MAT increased from 15 per cent to 18 per cent
6. Formula of computation for Tax holiday for SEZ units made applicable retrospectively from AY 2006-07
7. Investment-linked tax incentives extended for 2 star and above Hotels for any part of India
8. Extension of sunset clause for tax holiday for housing projects
9. Increased in the weighted deduction for in-house research and development and payment made to research organization
10. Rationalization of provisions with regard to allowability of deduction where TDS is applicable in respect of payments made to a resident Non-residents
11. Source Rule emphatically brought in to nullify the Supreme Court judgement
12. Scope of presumptive taxation for companies engaged in provision of services in relation to prospecting for or exploration or extraction of mineral oil restricted Other amendments
13. Conversion of company into LLP tax neutral
14. Transfer of shares for without or inadequate consideration exceeding Rs. 50,000 taxable in the hands of a company or a firm at fair market value
15. Threshold limit for tax audit increased
16. Basic limit for applicability of withholding tax increased
17. Rate of interest with regard to non-payment of withholding taxes increased
18. High court may condone the delay in filing of appeals
19. The deductor / collector of tax to continue to furnish TDS / TCS certificates to the deductee / collectee even after April 1, 2010
20. Penalty for non-compliance with tax audit report increased
21. Commissioners empowered to cancel the registration of charitable organization
22. Trade/Business receipts incidental to charitable activities permitted up to Rs. 10,00,000
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