NEW INCOME TAX FORM FOR A.Y.2007-2008, A.Y.2008-2009  AND A.Y.2009-2010

BUDGET PROPOSALS OF FINANCE BILL , 2010

1. Direct tax code to be rolled out from 01.04.2011.
2. GST to be rolled out from 01.04.2011.
3. Revised tax slabs for individual below 65 years

• Upto Rs. 160000                                        NIL
• Rs. 160001 to Rs. 500000                           10%
• Rs. 500001 to Rs. 800000                           20%
• Rs. 800000                                                30%

4. Additional deduction of Rs. 20000/- u/s 80CCF for Long Term Infrastructure Bonds.
5. Surcharge on domestic companies reduced to 7.5% from 10%.
6. Minimum alternative tax increased to 18% from 15%.
7. Limits of Tax audit under Income tax Act, increased as under.
   • For Business                   Rs. 60 Lacs from Rs. 40 Lacs
   • For Professional              Rs. 15 Lacs from Rs. 10 Lacs
8. New Saral form II to be notified for salaried tax payers.
9. Limits of Presumptive tax under Income tax Act, increased to Rs. 60 Lacs from Rs. 40 Lacs.
10. No disallowance u/s 40(a)(ia) – If Tax paid before the due date of filing the return of income.
11. Rationalization in limits for TDS.
12. Interest rate for late payment of TDS increased to 18% p.a. from 12% p.a.
13. Conversion of LLP from small companies shall not be subjected to Capital Gains Tax.
14. No change in service tax rates.