Thursday, July 9, 2009

HIGHLIGHTS OF BUDGET 2009 - PROPOSED AMENDMENTS RELATED WITH INCOME TAX PROVISIONS.

1. F.B.T. is abolished w.e.f. A.Y. 2010-11

2. Surcharge is abolished on Ind. Firms etc. (other than companies)

3. Wealth Tax Exemption increase from 15 lakhs to 30 lakhs.

4. Advance Tax deposit limit enhanced from Rs. 5000 to 10000 .

5. Cash Freight payment to a person in a day is increased from Rs. 20000 /- to 35000/-.

6. No TDS on transport Freight if transporter furnish PAN to the payer.

7. Application for approval under section 10(23C) for the F.Y. 2008-09 may be filed upto 30.9.2009.

8. Approval of Charitable Trust under section 80G will be for one time basis i.e. no further periodic renewal will now required for 80G. However CIT will have power to withdraw the said approval.

9. Limit of remuneration to working partners is increased as under :-
On First 3 lakhs of book profit : 90% or 150000 whichever is more
On remaining book profit : 60%
Business & Professional firm both are under same limit.

10. Gift of property/jewellery etc. from non relative will also taxable.

11. Rate of TDS on Plant & Machinery is reduced from 10% to 2%

12. Rate of TDS on Rent of land and building is reduced to 10%

13. Rate of TDS on contract where payee is Individual/HUF will be 1%.

14. Rate of TDS on Non PAN payees will be 20%.

15. A person furnishing Form 15G or 15H will also have a PAN, otherwise payer has to deduct tax @ 20%.

16. Surcharge and cess is abolished on TDS other than TDS on Salary.

17. Presumptive income in case of owner of goods vehicle is increase as under :-
Heavy goods vehicle = 5000/- PM
Other than heavy goods vehicle : 4500/- PM

18. Sec. 44AF is merged in sec. 44AD .i.e. 8% rate will also applicable on retailer.

19. Now sec. 44AD is applicable on all businesses having gross turnover/receipts upto 40 lakhs.

20. Deduction u/s 80DD is increased from 75000 to one lakh.

21. Minimum taxable limit is increased. Male/HUF 1.60 lakhs, Female 1.90 lakhs, Senior citizen 2.40 lakhs.

22. Sec. 50C will also applicable on all transfers (whether registered or unregistered)

23. In Sec. 148 the AO can touch upon the other issued unconnected with escaped income.

24. Deduction under sec. 80E will also available for loan for all fields of studies after senior secondary examination.

25. Anonymous donation received by charitable trust upto 1 lakhs (subject to maximum of 5% of total income) will not be taxable.

26. Deduction under section 10A & 10B will now available upto A.Y. 2011-12.

27. Commodity Transaction Tax is not be applicable w.e.f. 1.4.2009

28. The rate of Minimum Alternate Tax (MAT) is increased to 15%; the same can be set offed upto 10th assessment year.

29. LLP (Limited Liability Partnership Firm) will be treated as partnership firm for the purpose of income tax act.