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FM unveils Direct and Indirect Tax Budget Changes
New Delhi: 26th February 2010. FM has unveiled several Direct and Indirect Tax changes in the Budget as under: Direct Tax Income Tax slabs : deduction of an additional amount of Rs.20,000 for investment in long-term infrastructure bonds as notified by the Central Government. This would be over and above the existing limit of Rs.1 lakh on tax savings. current surcharge of 10 per cent on domestic companies reduced to 7.5 per cent. the rate of Minimum Alternate Tax (MAT) from the current rate of 15 per cent to 18 per cent of book profits. extended the scope of weighted deduction on expenditure incurred on in-house research and development (R&D) to all manufacturing businesses except for a small negative list. enhanced the weighted deduction on expenditure incurred on in-house R&D from 150 per cent to 200 per cent. enhanced the weighted deduction on payments made to National Laboratories, research associations, colleges, universities and other institutions, for scientific research from 125 per cent to 175 per cent. payments made to approved associations engaged in research in social sciences or statistical research would be allowed a weighted deduction of 125 per cent. extends the benefit of investment linked deduction under the Act to new hotels of two-star category and above anywhere in India. one time interim relief to the housing and real estate sector- allows pending projects to be completed within a period of five years instead of four years for claiming a deduction on their profits. Relaxed norms for built-up area of shops and other commercial establishments in housing projects to enable basic facilities for their residents. All businesses with a turnover exceeding Rs.60 lakh are required to have their accounts audited in place of Rs 40 lakh. Extended the scope of presumptive taxation to all small businesses with a turnover of up to Rs.60 lakh. Relaxing the current provisions on disallowance of expenditure, allows deduction of such expenditure, if tax has been deducted at any time during the financial year and paid before the due date of filing the return. This will allow most deductors additional time up to September of the next financial year. The interest charged on tax deducted but not deposited by the specified date, hiked from 12 per cent to 18 per cent per annum. Indirect Taxes Related News: |
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