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Tax4india ›› India Budget 2005-06›› Budget 2005-06 highlights
India Budget 2005-2006 Highlights
- Income up to Rs 1,00,000 per annum exempted from tax.
- Income between Rs 1-1.5 lakh to be taxed at 10%.
- Rs 1.5-2.5 lakh income to be taxed at 20%.
- Income above Rs 2.5 lakh to be taxed at 30%.
- Tax exemption level for women at Rs 1.25 lakh.
- Tax exemption level for senior citizens at Rs 1.5 lakh.
- Consolidated limit of Rs 1 lakh of saving to be deducted from income before calculating tax.
- Standard deduction goes.
- 01% tax on withdrawing over Rs 10,000 cash from banks on a single day.
- One-by-six scheme for filing IT returns changes: Payment of electricity bill of over Rs 50,000 in; mobile phone ownersship out.
- 50 paise per litre cess on fuel to fund highways.
- Defence allocation to be hiked to Rs 83,000 crore next fiscal.
- National food for work programme to converted into the national rural employment guarantee scheme with an allocation of Rs 11,000 crore.
- National rural health mission to be launched.
- Coverage of Antyodaya Anna Yojana to be extended.
- Allocation under mid-day meal scheme will be increased to Rs 3,010 crore.
- Total sanitation campaign to be extended to all districts.
- Rajiv Gandhi National fellowship for SC/ST students.
- Equity support for National Minorities Development and Finance Corporation to be increased.
- Special package of Rs 450 crore for highway development in the North-east.
- Bharat Nirman plan to be implemented over a period of four years for building infrastructure.
- Equity support of Rs 14,040 crore and loans of Rs 3,554 for central public sector enterprises including railways in 2005-06.
- Rs 630 crore to be provided to the National horticulture mission.
- New scheme for development/strengthening of agricultural marketing infrastructure, grading and standardization to be introduced.
- National project for repair, renovation and restoration of water bodies to be launched in March, 2005.
- Rs 180 crore outlay for flood management and erosion control in Ganga, Brahmaputra, Barak.
- Agricultural credit of Rs 108,500 crore to be disbursed in the current year and the credit flow to increase by another 30% in 2005-06.
- Number of borrowers from public sector banks will increase by another 50 lakh.
- National agricultural insurance scheme to continue for rabi and kharif 2005-06.
- Micro finance development fund to be redesignated as the micro finance development and equity fund with an increased corpus of Rs 200 crore.
- Provision of Rs 1,200 crore made for universal service obligation fund in 2005-06 for telecommunications.
- BSNL to provide public telephones in next 3 years to the remaining 66,822 revenue villages.
- National highway development project III to be launched.
- Rs 1,400 crore to be provided for four-laning 4,000kms in 2005-06.
- Rs 1,100 crore to be provided for rural electrification in 2005-06.
- Creation of rural electricity distribution backbone envisaged.
- About 15 lakh houses to be constructed during next year under Indira Awas Yojana.
- SPV to finance infrastructure projects which are financially viable.
- Outlay of Rs 5,500 crore made under the National Urban Renewal Mission to cover the 7 mega cities and some other towns.
- Surcharge of Re 1 per kg on tea, duty of Re 1 per kg on refined edible oils and Re 1.25 per kg on vanaspati to be abolished.
- Proposal to raise the ceiling for SSI exemption based on turnover from Rs 3 crore per year to Rs 4 crore per year.
- Excise duty on iron industry reduced.
- Duty on molasses to be increased from Rs 500 per mt to Rs 1,000 per mt.
- Increase specific duty on cement clinkers from Rs 250 per mt to Rs 350 per mt.
- Specific rate on cigarettes to be raised by about 10% and a surcharge of 10% to be imposed on ad valorem duties on other tobacco products including gutka, chewing tobacco, snuff and pan masala. Bidis exempt.
- Proposals to reduce the customs duty on textile machinery.
- Lower customs duty on specified machinery in leather and footwear industry.
- Reducing duty on specific pharmaceuticals and biotechnology machinery.
- Duties on specified parts of battery operated road vehicles and for printing presses.
- Reduction of duties on primary and secondary matters from 15% to 10%.
- Duty on lead to be reduced to 5%.
- Duty on coking coal with high ash content reduced 5%.
- Duty on polyester and nylon chips, textile fibres, yarns and intermediates, fabrics and garments to be cut.
- Two anti tax-evasion measures to be introduced.
- Banks to report on all deposits which are exempt from TDS on interest.
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