Peak customs duty rates on non-agricultural products reduced

Peak customs duty rates on non-agricultural products reduced from 20-15 per cent in line with India's east Asian neighbours.

Peak customs duty rates on non-agricultural products reduced from 20-15 per cent in line with India's east Asian neighbours.

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Refrigerator duty down from 20 to 10 per cent.

Another ten per cent ad valorem will be levied on tobacco products including gutka and chewing tobacco.

Cess on petrol and diesel has been raised by 50 paise which will be exclusively earmarked for national highway development programme.

Chidambaram abolished 1 per cent surcharge on tea and rupee one per kg surcharge on edible oil.

Excise on some petroleum products including motor spirit and diesel reduced to ten per cent from 15 and 20 per cent respectively.

No reduction in excise duty on auto and aerated water which will continue to attract 24 per cent duty.

Income between Rs 1 lakh and 1.5 lakh will attract 10 per cent and Rs.1.5 lakh to Rs.2.5 lakh- 20 per cent and beyond Rs.2.5 lakh -30 per cent.

Threshold level for women Rs 1.25 lakh and for senior citizens Rs 1.5 lakh.

Rs 1 lakh consolidated exemption limit will be allowed to all tax payers before computing taxable income.

Chidambaram said these measures will benefit all sections of income tax payers.

Conveyance and canteen allowance to be outside the tax net but all other perks given by employers to employees as a collective benefit will be taxed at 30 per cent. This new tax will be called Fringe Benefit Tax and will be levied on employers.

Six exemptions including interest payments on housing loan on self-occupied and medical insurance premium will be continued.

Corporate income tax for domestic companies reduced to 30 per cent. The ten per cent surcharge continues.

100 per cent tax deduction for companies carrying out scientific research.