The Telegraph
Since 1st March, 1999
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Standard deduction up to 40 per cent of salary, or Rs 30,000, whichever is lower, for incomes up to Rs 5 lakh

On incomes over Rs 5 lakh, standard deduction will be Rs 20,000 from zero at present

5% surcharge on incomes from Rs 1.5lakh-Rs 5 lakh goes

10% surcharge on incomes more than Rs 8.5 lakh

Senior citizens with an income of Rs 1.53 lakh will pay nothing; with the standard deduction of Rs 30,000 the real exemption will go up to Rs 1,83,000

Income tax exemptions for corporations set up by Central and state governments, and ex-servicemen

Income tax exemption for pharmaceutical and biotechnology companies to be on a par with information technology

Concessions to infotech under Section 10 A and 12 B of Income Tax Act to continue

Self declaration of tax returns will be accepted


Dividend tax off; equity-based schemes exempted from dividend and distribution tax for a year



Peak rate down 5% to 25% (Except farm products)

Life-saving equipment: down to 5% from 25%

Glucometer and strips: cut from 10% to 5%

High-voltage power-transmission gear: down to 5% from 25%

Hearing aids, tricycles: down 5%

Textile machines: down to 5% from 25%

Optical fibre: down 5% to 20%

Capital goods: down 10% to 15%

Diamonds: from 15% to 5%

Personal baggage: down 10% to 50%

Imported spirits: diluted to 156%

Duty on specified electronics and IT industry being reduced in keeping with WTO requirements

Biotechnology and pharmaceutical research companies need not comply with an annual export obligation of Rs 20 crore to avail of duty exemptions


Three-tier structure: 8%, 16% and 24%. This will not cover petro goods, tobacco & pan masala

Cars: Cut from 32% to 24%

5% on shrimps, down 10%

Garments: pruned 2% to 10%

Pay 4% Cenvat, stay out of excise

Mosaic tiles, utensils, cycle parts, spectacles, walking sticks, knives, kitchenware: down 4% to 8%

Pressure cooker, biscuits: halved to 8%

8% duty on packaged refined edible oil

Life saving drugs exempted

CDs/music cassettes out of excise

Additional cess of Rs 1.50 additional duty on a litre of light speed diesel to raise Rs 2,600 crore for north-south and east-west corridor highway projects


Service tax, which will now cover 10 more items, raised from 5% to 8%; to be integrated with other taxes to boost states’ revenue

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