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

AMENDMENTS IN PROVISIONS OF FINANCE BILL, 2008 AFTER PROPOSAL 

1. Threshold limits increased from Rs. 110000/- to Rs. 150000/-.
2. Threshold limit for women assessee Rs. 180000.
3. Threshold limit for senior citizen assessee Rs. 225000
4. Changes in Slab rates

• 150000 to 300000                   10%
• 300001 to 500000                   20%
• 500001 and above                   30%

5. No change in Corporate tax.
6. No change in surcharge rates.
7. Additional deduction u/s 80D for medical insurance premium paid for parents
8. Short term capital gains rate increased from 10% to 15%.
9. STT now deductible as business expenses instead of Rebate.
10. BCTT to be withdrawn from 01-04-2009
11. CST rate cut to 2% from 3%.
12. No Change to Service Tax Rate.
13. Basic Exemption limit for Service Tax increased to Rs.10 Lakhs.
14. PAN requirement to be extended to all transactions in financial market subject to a threshold limit