New Delhi, Jul 6: In his speech on the Union Budget 2009-10, the Finance Minister, Pranab Mukherjee noted that the tax reforms that have been introduced earlier given out impressive results. Saying that reforming and rationalizing the tax policies would be his priority, he added that the government would be committed to the same too.
The Finance Minister who attributed the growth rate in the past few years to the reforms in the Direct taxes areas, proposed the following:
- The process of tax filing will be simplified in next four years
- The structural changes in the direct taxes will be pursued by releasing the new Direct Taxes code within 45 days
- Increase the income tax exemption limit for senior citizens by Rs.15,000
- increase the income tax exemption limit for women and others by Rs 10,000 each
- The corporate taxes have been left unchanged
- Surcharge on various direct taxes will be phased out
- Elimination of 10 pc surcharge on Personal Income-Tax
- Fringe Benefit Tax (FBT) has been done away with
- Minimum Alternate Tax (MAT) to be increased by 15 per cent of book profits
- Commodity Transaction Tax (CTT) will be abolished
Pranab Mukherjee said the proposed reforms would be 'achieved by eliminating distortions in the tax structure, introducing moderate levels of taxation and expanding the base'.