Budget at Glance 2009

BUDGET 2009 INCOME TAX & SERVICE TAX PROPOSALS
NEW SARAL FORM TO BE INTRODUCED
A new Saral 2 Form to be introduced for the tax payers.
NEW INCOME TAX RATES
Individuals/HUF
Women assesseeSenior CitizensRate
Up to 160000Up to 190000Up to 240000Nil
160000-300000190000-300000240000-30000010%
300000-500000300000-500000300000-50000020%
Above 500000Above 500000Above 50000030%

There will be no surcharge on individual taxation.
No change in the rates of Corporate assesses and firms.
FBT SCRAPPED
FBT has now been scrapped
MAT INCREASED
MAT now increased from 10 % to 15%.
MAT credit now will be available for 10 years (Previously 7 years).
80 DD LIMIT INCREASED
Deduction under 80 DD for medical treatment of dependent senior citizen has been increased from 75000 to 100000.
NO ADVANCE TAX FOR SMALLL BUSINESS ASSESSEES
There is no advance tax required to be paid by the retail traders whose turnover is below Rs. 40 lakhs and who have opted for presumptive taxation.
SERVICE TAX ON LAW FIRMS
Law firms are now cover under service tax net, except in the cases where either service providers or recipients are individuals.
SERVICE TAX ON ALL THE MODE OF GOODS TRANSPORT
Service tax on goods transport are now covered for the carriage of goods through railway or cargo also.