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2008-09
(Jan 31, 2008)
With the budget 2008-09 in the pipeline, various steps are expected to be included in it. Several points that are most likely to be covered in the upcoming budget releasing on February 29' 08 entails:
- Exemption of duties on life-saving drugs that comes in use for
treating diseases like cancer, AIDS and diabetes.
- In order to make a taxpayer to save around 2000 rupees every
year, the fixed deduction limit might be raised 20 percent to
120,000 rupees.
- Control of indirect taxes on consumer goods to enhance
consumption.
- Imported set top boxes may attain a customs duty of 5 percent, in
a move to encourage domestic goods.
- Public sector banks might become relieved of fringe benefit tax
on their contribution to statutory pension funds.v u Reduction of
duties on consumer electronics goods from 16 percent to 12 percent.
- Relieve of personal income tax level to be increased from 1.1
lakh rupees to 1.25 lakh rupees a year. However taxable income of up
to 1.5 lakh rupees will continue to extract 10 percent income tax.
- The government might seriously reckon on a proposal to cease
taxes on the provisioning of non-performing (NPA) assets by banks,
especially on farm sector lending. NPA provisioning is taxed at the
rate of 30 percent now.
- Exemption of 5 percent customs duty for liquefied natural gas that comes in use for power generation projects.
