Highlights of Finance Bill
Amendments
Direct Taxes:
The business of Developing or operating and maintaining any
infrastructure facilities has been included in the positive list of business
and industries under the proposed amendments in clause (23FB) of section 10.
Venture Capital Funds investing in infrastructure facilities as defined in
Explanation to section 80IA(i), will now get the benefit of pass through status
The Valuation of perquisite in the nature of rent-free or
concessional rent accommodation owned and provided by the non-Governmental
employer to his employee is proposed to change as
7.5% of salary (for cities having population of 10 lakhs and less)
10% of salary (for cities having population of more than 10 lakhs,
but not more than 25 lakhs)
15% of salary (for cities having population of more than 25 lakhs)
The fringe benefit arising from Employee stock options (ESOPs) will
now be valued on fair market value, on the date of vesting of option, as
reduced by the amount paid by the employee for acquiring the specified
security. The period of holding for the purpose of capital gain tax will be
reckoned from the date of allotment or transfer of specified security.
Under Section 80C, Investment in rural bonds of NABARD is proposed
to be included in the list of permissible investments
From 8% to nil on texturised vegetable proteins(soya bari), ready
to eat packaged food
From 16% to 8% on particleboards and other similar boards of
heading 4410 and fiberboards of heading 4411 and slide fasteners, including zip
fasteners, and their parts falling under heading 9607.
From Rs 11 to Rs 9 per thousand on hand made biris and from Rs 24
to Rs 21 on others
Full Excise Exemption from excise duty now available to biscuits of
RSP equivalent up to Rs 100 per Kg and Purification Equipment based on
ultra-filtration technology using polysulphone membranes
Ad-Valorem rate of excise duty at 12% of RSP has been prescribed
for Cement of retails sale price exceeding Rs 190 per 50 kg bag or exceeding Rs
3800 per tonne. The rate of excise duty on cement priced above Rs 250 per 50 kg
bag or exceeding RS 5000 per tonne will be Rs 600 PMT.
From 10% to 7.5% on N-paraffin
From 10% to nil on refrigerated motor vehicles
Export duty on iron ores fines of Fe content of 62% and below has
been reduced from Rs 300 per PMT to Rs 50 PMT.
Cut and polished diamonds are fully exempted from custom duty.