Union Budget 2009-10 Highlight on Direct & Indirect Taxes

• Service tax levied on law firm
• Custom duty on gold re-imposed
• Customs duty to be reduced on drugs for heart treatment
• No new tax on edible oil imports
• 4 per cent excise duty on cotton products restored
• Customs duty on bio-diesel reduced
• Life saving devices on heart condition exempted from custom duty
• Small business exempt from advance tax
• To maintain overall customs and excise duty structure
• Tax holiday to natural gas extended
• Tax slab raised
• MAT hiked to 15 per cent of book profit
• Commodity transaction tax abolished
• New pension scheme
• Tax holiday for exporters extended untill 2012
• Personal income tax exemption hiked by Rs 10,000
• Abolish fringe benefit tax
• Tax holiday extended for textile units
• Goods and services tax from April 1, 2010
• Share of direct taxes has increased to 56 per cent in 2008-09.
• Federal Tax/GDP ratio is 11.5 per cent
• No surcharge of 10 per cent on personal income tax
•  Increase in exemption slab for senior citizen
• No change in corporate taxes
• Hike in IT exemption for women to Rs 1,90,000
• Govt committed to tax reforms
• Increase automation in direct tax collection
• New tax code in 45 days
• Centralised processing center at Bengalooru to streamline taxation
• Income tax forms should be user friendly
• Tax system should be such that it should encourage voluntary compliance
• Saral form 2 will be introduced
• Customs duty on bio-diesel reduced.
• Silver to cost more.
• Tax to be levied on Law Firms. 
• Textile units to receive tax holiday.
• LCD TVs to cost less. Custom duty on LCD TVs cut from 10% to 5%.
• Set-Top Boxes to cost more.
• Customs duty of 5% on set-top boxes.
• To extend tax holiday for commercial production of mineral oil and natural gas.
• Fringe Benefit Tax abolished.
• Commodity Transaction Tax abolished.
• Personal income tax exemption hiked by Rs 10,000.
• No surcharge of 10% on personal income tax.
• Centralised processing center at Bengalooru to streamline taxation.
• No change in corporate tax.
• Increase in exemption slab for senior citizens by Rs 15,000.  

Related posts:

1. Union Budget 2009-10 Major Highlights
2. Highlight of Maharashtra State Additional Budget 2009
3. No further reduction in corporate, excise and service taxes in next Budget
4. Govt May Scale Down Indirect Tax Target
5. Assessee details verification for indirect taxes