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The Finance Minister Pranab Mukherjee has raised the tax exemption limit for senior citizen from Rs 225,000 to Rs 240,000, for women from Rs 180,000 to Rs 190,000 and for all other Rs 1,50,000 to Rs 1,60,000.
The Finance Minister has made provisions for abolishing Fringe Benefit tax, whereas the corporate tax unchanged.
The following are some of the 6tax reforms from budget 2009-10;-
- Surcharge of 10% on personal income tax eliminated
- Corporate taxes to remain the same
- IT Exemption limit increased by Rs. 10,000 for all
- Propose to phase out surcharge on Direct Taxes
- Fringe Benefit Tax removed
- Basic structure of Goods and Services Tax to be maintained
- To raise Minimum Alternate Tax(MAT) to 15 % of book profit
- Commodity Transaction Tax eliminated
- Carry Forward Tax credit on MAT to 10 year
- Pension trust exempted from Securities Transaction Tax
- To create Alternate Tax disputes resolution mechanism for foreign companies
- Software Technology Parks of India (STPI) extended by a year
- GST to be a dual regime with Central and state terms
- No Securities Transaction Tax (STT) on sale/purchase of shares by NPT
