Govt committed to moderation, stability in tax rates: FM

There is no alteration in tax slabs and widows of armed and para-military forces killed in operations are exempted from income tax.

Government remained committed to moderation and stability in tax rates, Finance Minister P Chidambaram said.

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Highlights

No alteration in tax slabs.

1.4 crore tax assessees to go out of the net as a result.

Family pension for widows of armed forces and para-military forces killed in operations are exempted from income tax.

Section 80(DD) and Section 80 (U) will be given to persons suffering from autism, cerebral palsy and multiple disability.

Contributions to Contributory Pension Scheme exempted form tax.

Terminal Tax to be paid at the time of receipt.

Encouragement to automobile sector. Industry to be provided 150 per cent exemption in R&D.

Rural hospitals with 100 beds to be get 80(I)(B) concessions.

Capital Gains Tax revamped on securities. Long term capital gains tax abolished.

Tonnage tax introduced for shipping industry.

Equity related Mutual Fund will continue to be exempt from Dividend Tax.

Companies doing research on bio-technology to get 100 per cent tax exemption.

0.15 per cent tax on transaction on securities will be levied.

20 per cent tax on corporate unit holders of mutual funds.

Peak rate of Customs Duty to continue at 20 per cent.

The concession of tax exemption of new industries in J&K extended by one more year to April 1, 2005.

Reduction in customs duty in non-alloy steel from 15 per cent to 10 per cent, excise duty raised from eight per cent to 12 per cent.

Tractors will be fully exempted from excise duty against existing 16 per cent.

Dairy machinery also fully exempted. Spades and shovels also fully exempted.

Health sector to be provided a number of conessions.