The document summarizes various tax proposals from the Indian Budget for 2009-2010. It outlines changes to personal income tax rates and the abolition of the 10% surcharge for individuals. For corporations, the tax rate remains unchanged but the MAT has increased. Other taxes like CTT have been abolished while DDT and fringe benefits tax have remained the same. Procedural changes include mandatory PAN requirements. Limits for deductions have been increased for partner salaries, cash payments, and dependent disability. Indirect taxes like service tax have been extended to new services but exemptions have also been introduced.

1. Dipti Chheda, FCA BUDGET 2009-10 SNAPSHOT OF TAX PROPOSALS

2. CHANGES IN RATES 240000 225000 190000 180000 160000 150000 Dipti Chheda, FCA

4. Education cess and Secondary and Higher Education Cess at 3% to continueDipti Chheda, FCA

6. MAT increased from 10% to 15%Dipti Chheda, FCA

8. No change in Dividend Distribution Tax

9. Fringe Benefit Tax to be abolished and fringe benefits to be taxed as perquisites

10. Advance Tax only if it is above 10000Dipti Chheda, FCA

13. Lower withholding tax certificate shall be not granted by income-tax authorities unless application filed contains PAN of the applicant.

14. PAN shall also be mentioned in all correspondence/ bills/ vouchers/ other documents exchanged between deductee and deductor.

15. This amendment will take effect from AY 2010-2011Dipti Chheda, FCA

17. for the first Rs.300,000 of book profits or in case of loss Rs. 150,000 or 90% of book profits, whichever is higher

18. for balance amount of book profits –60% thereof Dipti Chheda, FCA

20. Capital expenditure incurred by certain business like cold chain facility, warehousing facility and laying and operating natural gas or crude or petroleum oil pipeline shall be allowed as deductionDipti Chheda, FCA

23. 5% of the total income of such institution, or

24. Rs.100,000 whichever is higher. Earlier, all anonymous donations were taxed in the hands of the institutions. Dipti Chheda, FCA

30. INDIRECT TAX PROPOSALS Dipti Chheda, FCA

32. The service tax rate remains unchanged at 10%

33. The levy is now extended to the following new services:–

34. Legal Consultancy Services rendered by one business entity to another business entity. Individuals are excluded from the levy, both as receiver and provider. Appearance before any court, tribunal or authority is also excluded from the levy

35. Cosmetic and Plastic Surgery Services excluding any surgery undertaken to restore/ reconstruct anatomy or functions of the body affected due to congenital defects, developmental abnormalities, degenerative diseases, injury or trauma–Dipti Chheda, FCA

37. The definition of 'India' has been amended to include installations, structures and vessels in the continental shelf of India and exclusive economic zones. Dipti Chheda, FCA

39. Services in relation to buying and selling of foreign currency between scheduled banks

40. Transport of passengers by private bus operators in a vehicle bearing 'contract carriage permit'

42. Custom duty on life saving drugs reduced.Dipti Chheda, FCA

44. New tax code to be set up in 45 days

45. Saral-II forms to simplify taxation process Dipti Chheda, FCA

46. Major impact Though the benefit from budget 2009-10 is fringe but it is for everyone -right from rural Indian farmer, unorganized sector woman, minorities, salaried people defence personnel, small tax payers and corporate leaders. It has offered something to everyone Dipti Chheda, FCA

47. Thank You Questions?? Dipti Chheda, FCA