The Hindu : Kelkar report highlights

Online edition of India's National Newspaper
Saturday, Dec 28, 2002

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Front Page

Kelkar report highlights

PERSONAL INCOME-TAX

Exemption limit up from Rs 50,000 to Rs 1 lakh for individuals and HUFs; exemption limit for senior citizens and widows at Rs 1.5 lakh.

Income between Rs 1 lakh and Rs 4 lakh to be taxed at 20 per cent; incomes above Rs 4 lakh at 30 per cent

Dividends received from Indian companies fully exempt.

Long-term capital gains on listed equity fully exempt.

Standard deduction to go for salaried taxpayers; however, exemption for conveyance allowance subject to a ceiling of Rs 9,600 will continue.

Section 88 tax rebate for savings to go; no rebate under Section 88B for senior citizens.

Section 80L benefit for interest income and dividends to go.

No exemption under Section 10 for interest income from bonds, securities, debentures and so on.

Deduction towards housing loan interest to be reduced to Rs 50,000.

CORPORATE TAX

Corporate tax rate cut from the existing 36.75 per cent to 30 per cent for domestic companies; to 35 per cent for foreign companies.

No tax on distribution of dividends by a company.

Minimum Alternate Tax under Section 115JB to go.

Business loss to be allowed to be carried forward indefinitely.

Depreciation rates to be reduced to 15 per cent for general plant and machinery.

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