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Relief has been provided under personal taxation. There are no changes in the corporate tax, MAT as well as DDT rate. Marginal relief has been given to the ultimate holding company while declaring dividend, by way of setoff of DDT paid by its immediate subsidiary.

There are no proposals to extend the benefits of tax holiday enjoyed by STP / EOU Units beyond March 31, 2009. This would result in greater preference towards SEZ for new units.

No tax incentives have been extended for exports despite global slowdown and appreciating rupee. Short-term capital gain tax has been increased. This would reduce the attractiveness of the Indian Stock markets for investors. The matter of classification of "Gains from sale of Shares" as business income or capital gains still remains open.

The proposal to remove BCT Tax with effect from April 1, 2009 is positive. No new levies have been proposed except for levy of Commodities Transaction Tax.

The amendment provided with regard to no tax being payable on reverse mortgage receipts is a welcome relief.

Suresh Surana, Chartered Accountant and founder of RSM Astute Group

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