In respect of rates of tax, the following changes have been proposed in the Finance Bill, 2010:
• Basic exemption limit remains the same. The slab for 10% tax has been revised to
Rs. 5,00,000/- from the existing Rs. 3,00,000/- in case of Individuals, HUFs, AOPs
and BOIs.
• Surcharge of 10% applicable to domestic companies has been reduced to 7.5%.
There is no change in the rate of surcharge of 2.5% in case of foreign companies.
• There is no change in tax rates of Firms, Domestic Companies, Companies other
than Domestic Companies and Co-operative Societies.
• There is no change in rates of Educational Cess, Secondary & Higher Secondary
Cess and its applicability.
• Rate of Minimum Alternate Tax in case of Companies is proposed to be increased
from 15% (effective 16.995% with surcharge and cess) to 18% (effective 19.9305%
with surcharge and cess).
• Rate of Dividend Distribution Tax remains same.
• Rates of Securities Transaction Tax and its applicability remains the same.
• There is no change in the threshold limit and rate of wealth tax.