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Income tax
• No change in slabs or rates of personal income tax
• A tax credit of Rs 2,000 for total income up to Rs 5 lakh
• Surcharge of 10% on taxable income above Rs 1 crore
• Education cess to continue at 3 per cent
• Permissible premium rate increased from 10 per cent to 15 per cent of the sum assured by relaxing eligibility conditions of life insurance policies for persons suffering from disability and certain ailments.
• Contributions to schemes of central and state governments eligible for Section 80D of the Income Tax Act.
• Donations made to National Children Fund eligible for 100% deduction.
Corporate tax
• Increase in surcharge from 5-10 % on domestic companies whose taxable income exceeds Rs 10 crore
• For foreign companies who pay a higher rate of corporate tax, surcharge to increase from 2 -5% if taxable income exceeds Rs 10 crore. In all other cases such as dividend distribution tax or tax on distributed income, surcharge up from 5-10%
• Additional surcharges to be in force for only one year
• Investment allowance at the rate of 15% to manufacturing companies that invest more than Rs 100 crore in plant and machinery during April 1, 2013 to March 3, 2015
• Date for power projects to avail benefits under Section 80-IA extended from March 31, 2013 to March 31, 2014
• Concessional rate of 15% on dividend received by an Indian company from its foreign subsidiary to continue for one more year
• A final withholding tax at the rate of 20% on profits distributed by unlisted companies to shareholders through buyback of shares
• Proposal to increase the rate of tax on royalty payments for technical services to non-residents from 10% to 25%
• Reductions made in rates of Securities Transaction Tax
• Proposal to introduce Commodity Transaction Tax (CTT) in a limited way. Agricultural commodities will be exempted
• Modified provisions of GAAR will come into effect from April 1, 2016
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