TAX is a fee charged by a

government on a product ,
income , or a activity.
WHAT’S
CHEAP
• These are taxes that are implied directly on
individuals or customers.
• There is no change in the tax rates or
number of slabs, personal income tax slabs
has been modified.
• An increase in MAT rates will have an impact
on companies.
•Exemption limit for the general category of
individual taxpayers enhanced from `
1,60,000 to ` 1,80,000.
•Exemption limit for the category of woman
assesses (below the age of 65 years)
taxpayers has been unchanged and kept at
` 1,90,000
•Exemption limit enhanced for the category
of senior citizens taxpayers from `2,40,000
to ` 2,50,000.
•The qualifying age for senior citizens
reduced from 65 years to 60 years.
•Exemption limit for the category of very
senior citizens(80 years & above) taxpayers
is `5,00,000
 Current Proposed Slabs Basic rate of tax
slabs(INR) (INR)
Upto160,000 Upto160,000 NIL

160,001 to 160,001 to 10%

300,000 500,000
300,001 to 500,001 to 20%
500,000 800,000
Above 500,000 Above 800,000 30%
 No change in tax rate but surcharge
for domestic companies reduced from
7.5% to 5%
 Surcharge on corporate tax for
foreign companies has been reduced
from 2.5% to 2%.
 MAT increased from 18% to 18.5%.
 No change in corporate tax with
respect to foreign companies which is
41.20% but if income exceeds beyond
I cr. Tax will be 42.23%.
 The threshold limit for accounts audited, in
case of business- from Rs.40 lacs toRs. 60
lacs & in case of professionals- Rs 10 lacs to
Rs 15 lacs.
 In case of failure to get account audited
would attract penalty of Rs 1.5 lacs in place
of Rs 1 lacs
A tax, such as a sales tax or value-added tax, that
is levied on goods or services rather than
individuals and is ultimately paid by consumers in
the form of higher prices.
 The peak rate for central excise
duty will continue to be 10%
 ad valorem component of excise
duty on large cars, multi-utility
vehicles and sports-utility
vehicles increased by 2
percentage points to 22 per
cent.
 Central Excise duty on petrol
and diesel enhanced by Re.1 per
litre each.
 Rate of tax on services retained
at 10 per cent to pave the way
forward for GST
 Excise duty of 4 percent levied on all electrically
operated vehicles and battery operated
cars(including electric motor assisted cycle
rickshaws driven by rechargeable solar batteries).
 Excise duty of 4percent levied on specified IT
products like microprocessors other than
motherboards, floppy disk drives, harddisk drives,
CDROM drives,etc.meant for external use with
computer/laptop as a plug-in device.
 Basic customs duty on agricultural
machinery reduced to 4.5 per cent
from 5 per cent
 Basic customs duty on raw silk
reduced from 30 to 5 per cent.
 Basic customs duty on bamboo
used for manufacturing of
agarbattis is being reduced from
30% to 10%
Broadening of tax base
 The annual practice of adding new
services to the tax net has been
continued by introducing two new
services and expanding the scope
a. New services
 Services provided by air
-conditioned restaurants licensed
for serving alcohol beverages.
 Accommodation provided by the
hotel etc. for duration of less than
three months

17
Today tax planning has become a major part in
every taxpayer’s life where the individual uses
various methods to reduce his tax liability and
enhance his growth.
• Agriculture
This sector has got a number of favorable tax benefits from the
Finance Minister's proposed budget.
Conveyors used for cold storage, mandis and warehouses go tax
free.

• Specified agricultural machineries for which the tax rate was

reduced to 5% in the last budget are reduced to 2.55% in the
proposed budget.
• Imports of certain raw materials
are going to cost lesser, with a
view to create value addition in
India by manufacturing finished
products from these raw materials.
Some of them are:
 
• Raw materials used for Textiles,
chemicals, Ferro-alloys and paper
manufacturing
• Stainless steel scrap
• Components and parts for
manufacturing mobile phones,
electronic components, ink-jet and
laser-jet printers.
 The one take away from
the Union Budget for the
common man is definitely
the tax relief.
• Pay less tax but save nothing
• On the surface, increasing servicing
tax to 5% from 3% doesn't seem high.
But given that need-based spending
has increased steadily over the last
few years, we are now burdened with
more indirect taxes than the direct tax
we pay.
 A net revenue loss of ` 11,500 crore
estimated as a result of proposals in
respect of Direct Taxes.
 Proposals relating to Indirect Taxes
estimated to result in a net revenue gain
of Rs.46,500 crore for the year. Taking
into account the concessions being given
in the tax proposals and measures taken
to mobilise additional resources, the net
revenue gain is estimated to be Rs.
20,500 crore for the year.
 Through taxes the government is able to support a lot of
institutions and agencies that operates and works for
the welfare of a lot of people particularly about the
citizens of a certain country. Such as orphanages, public
hospitals, and public law firms
 Taxes are used for the construction and repairing of
commercial buildings, roads, schools, hospitals, homes
for the less fortunate people.
 Taxes are also used for supporting the wages and
benefits of several and various government employees.
These employees are like the police, teacher, public
doctors and nurses, firemen