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The present deduction of 25% of annual value for
repairs (in case of income from House Property) etc.
is proposed to be enhanced to 30%.
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Accelerated depreciation at the rate of 50% on new
commercial vehicles for one year.
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Rate of depreciation of ships and inland water
vessels is increased to 25%
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Increase the development allowance available for tea
from 20% to 40%.
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Tax holiday for five years and 30% deduction of
profits for the next five years to the enterprises
engaged in the integrated business of handling,
transportation and storage of food-grains.
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In addition to the tax holiday proposed for
development of infrastructure, tax incentives have
also been provided for the investors providing
long-term finance or investing in the equity capital
of the enterprises engaged in infrastructure facility.
Any income by way of interest, dividends or long-term
capital gains from such investments is fully exempt.
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The five-year tax holiday and 30 % deduction for
next five years to the telecommunications sector for
the units commencing their operations on or before 31,
March 2003. These concessions will also be extended to
internet service providers and broadband networks.
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Ten-year tax holiday which may be availed of during
the initial twenty years for the core sectors of
infrastructure namely, roads, highways, rail system,
water treatment and supply, irrigation, sanitation and
solid waste management systems
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Exempt long-term capital gains arising from the sale
of securities and Units if such gains are reinvested
in primary issues of shares of public companies.
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The tax payable on the distribution of dividends of
domestic companies and income in respect of Units of
Mutual Funds and UTI to reduce to 10%
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Tax exemption in respect of interest paid on such
External Commercial Borrowings will not be available
for such borrowings made on or after the first day of
June 2001.
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tax exemtion withdrawn for income of NABARD,
National Housing Bank and Small Industries Development
Bank of India (SIDBI)
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I.T. Sector continues to do well and should be
encouraged to do better. I, therefore, propose that
profits derived by the units located in the software
technology parks from the export of
"on-site" services will be eligible for
deduction like their other export income. Units
located outside these zones will also get the benefit
of tax exemption on such export earnings.
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Salaried persons in the lower income range having
income up to rupees one lakh. Such persons will get an
enhanced tax rebate at the rate of 30% in respect of
their eligible investments under section 88 of the
Income Tax Act, as against 20% at present.
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Value of perquisites, benefits or amenities shall be
determined on the basis of their cost to the employer,
except in respect of houses and cars where different
criteria will be adopted for simplicity.
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TDS to be deducted on income from interest if it
exceeds Rs 2500
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Winnings from lotteries, crossword puzzles etc. are
currently taxed at 30%
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Income tax at source will henceforth be deductible
at the rate of 10 % on income by way of commission or
brokerage exceeding Rs 2,500/-, except on transactions
relating to shares and securities.
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All companies should file their returns even if they
incur a loss.
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Allow 100% deduction for donations to the National
Trust for welfare of persons with autism, cerebral
palsy, mental retardation and multiple disabilities.
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All surcharges payable by corporates and non-corporates
except the surcharge of 2 % for relief to quake hit
areas of Gujarat. Individuals having an income of up
to Rs 60,000/- will not be subject to this surcharge.
