Service tax net widened, personal IT unchanged
New Delhi, Feb 28: Finance Minister P Chidambaram today (Feb 28, 2006) brought more services under the service tax net, but left untouched the personal income tax and corporate income tax.
Following are the highlights of the Budget proposals:
- Service tax net widened.
- No change in the rates of personal income tax or corporate income tax. No new tax imposed.
- Defeance allocation raised by Rs 6000 crore
- Fringe benefit tax rationalised in certain cases.
- Direct tax proposals to yield a gain of Rs 4,000 crore.
- Indirect taxes to bring Rs 2,000 crore gain.
- Excise duty on Aerated drinks and small cars reduced from 24 pc to 16 pc.
- Customs duty reduced on a number of items.
- Irrigation outlay increased to Rs 7,121 crore.
- Interest on short-term farm loan to be 7 pc.
- Budgetary support to Bharat Nirmal raised by 54 pc
- Allocation for rural employment to be Rs 14,300 cr.
- Rs 12,041 cr allocation for North-Eastern region.
- Revenue deficit to be 2.1 per cent and fiscal deficit 3.8 pc.
- Plan expenditure up by 20.4 pc.
- Total revenue receipts estimated at Rs 4,03,465 crore.