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Taxes: A ready reckoner

Larissa Fernand

ON THE INTEREST RATE FRONT

Provident fund rates pre-Budget: 12%

Provident fund rates post-Budget: 11%

ON THE PERSONAL TAXATION FRONT

Pre-Budget: Income up to Rs 50,000: Not taxable.

Post-Budget: Identical.

Pre-Budget: Income from Rs 50,000 to Rs 60,000: 10% + 10% surcharge = 11%

Post-Budget: Identical.

Pre-Budget: Income from Rs 60,000 to Rs 150,000: 20% + 10% surcharge = 22%

Post-Budget: Identical.

Pre-Budget: Income over Rs 150,000: 30% + 10% surcharge = 33%

Post-Budget: 30% + 15% = 34.5%

ON THE REBATE FRONT

Pre-Budget: Tax rebate for senior citizens (above 65 years of age) Rs 10,000.

Post-Budget: Tax rebate for senior citizens Rs 15,000.

Pre-Budget: Additional tax exemption for women: Nil.

Post-Budget: Additional tax exemption for women: Rs 5,000.

ON THE CAPITAL GAINS FRONT

Pre-Budget: Capital gains exemption under section 54EA and 54EB.

Post-Budget: Capital gains will be exempt if invested in 5-year bonds of NABARD (National Bank of Agricultural and Rural Development) and NHAI (National Highways Authority of India).

Pre-Budget: The second house bought was not qualified for long-term capital gains tax.

Post-Budget: Now it does.

ON THE LOANS FRONT

Pre-Budget: Housing loan repayments under Section 88 get a Rs 10,000 tax rebate.

Post-Budget: Housing loan repayments get a Rs 20,000 tax rebate.

Pre-Budget: Tax deduction on higher education loans Rs 25,000.

Post-Budget: Tax deduction Rs 40,000.

ON THE PROPERTY FRONT

Pre-Budget: Earnings from farm houses were considered as agricultural income and not taxed.

Post-Budget: All non-agricultural income from farm houses (such as renting out) will be taxed.

WHAT TO BE HAPPY ABOUT

Cellphones, computers, photographic equipment,electronic goods will be cheaper.

Gift tax is not reintroduced.

The finance minister promises to allot the PAN number within 30 days.

He also hopes to let us pay our taxes at nationalised banks.

WHAT TO BE SAD ABOUT

Surcharge on income tax has not dropped and has gone up in the highest bracket.

Companies and mutual funds won't be so outgoing with dividends now that they have to pay 20% tax on it.

Budget on Rediff | Dun & Bradstreet Budget Special | The Run-up
Budget Process | Budget Hotlinks | NDA Government & Economy
Ministry of Finance: Economic Survey 1999-2000 | Budget 2000 document

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