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HOME | BUSINESS | BUDGET 2000-2001 | REPORT |
February 29, 2000
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Taxes: A ready reckonerLarissa 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.
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