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Budget India 97 Sponsered by [LOGO]

ChemOtech Fabcon Pvt Ltd.


OTHER THAN COMPANY ASSESSEE

  1. The rates of tax for individual, HUFs, AOPs & BOIs are to be reduced substantially as under:-
    Income below 40,000-No Tax
    Between 40,000 to 60,000-10%
    Between 60,001 to 150,000-20%
    Between 150,001 and above-30%
    My Comments : This is one good point to widen the tax law and induce people to pay the tax. The Finance Minister has not only increased the slab rates but also reduced the tax % to be paid. With this revoking, I would like to bring to your point that this would be the only and major income for the Finance Minister, rest direct/indirect tax being abolished or curbed down.
  2. The rate of tax for partnership firm is to be reduced from 40% to 35%.
  3. The rate of tax in respect of long term capital gain arising on transfer of specific assets covered by chapter XII A to NRI is to be reduced from 20% to 10%.
  4. The maximum permissible standard deduction U/S 16(i) is to be enhanced to Rs. 20,000 in respect of all salaried employees, from the earlier limit of Rs. 15,000 and Rs. 18,000/- for man & woman respectively.
    My Comments : That means the person earning maximum of 75,000 and investing in PF would not have to pay any tax. After all the salaried people are the only honest tax payers because of the T.D.S. scheme and they really deserve the same.
  5. Dividend declared, distributed or paid by a domestic company on or after 1st June 1997 are to be totally exempted from tax in the hands of all category share holders U/S 10(33).
  6. It is proposed to exempt capital gain arising on transfer of membership of a non Corporate member of a recognised stock exchange to a company in exchange of shares of that company on or before 31st December 1997. Share so alloted to member will be subject to lock in period of 3 year (U/S 47 & U/S 47A).
  7. The maximum permissible standard deduction from family pension is being enhanced from Rs. 12,000/- to Rs. 15,000/- U/S 57(iia).
  8. Deduction U/S 80GG in respect of rent paid by an assessee for residential accommodation is to be deleted.
  9. The tax rebate U/S 88 is to be extended to subscription to equity shares / debenture of a public company engaged in providing telecommunication services (basic or cellular) within the existing limit of Rs.14,000/-.
  10. All resident Individuals of age sixty five years and above are to be eligible to a rebate from income tax at the rate of 100% subject to a limit of Rs.10,000/- irrespective of the income earned by such persons. Thus, a senior citizen will not pay any tax upto an income of Rs.1,00,000/- and will get a rebate of Rs.10,000/- in case of higher income.
  11. In order to broaden the tax base and to bring more persons into the tax net, it is proposed to amend section 139 to provide that, besides persons already filing return, any person fulfilling ANY TWO OF THE FOLLOWING CONDITIONS shall also be required to file a return of his income, if such person: Failure to file such return within the prescribed time will attract a penalty of five hundred rupees. Initially, these provisions will be applicable to only some notified selected cities. It is to be noted that this provisions will be EFFECTIVE FROM A.Y. 1997-98.


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