Following are the highlights of the direct and indirect tax sops announced by Finance Minister Yashwant Sinha while moving Finance Bill 2002 in the Lok Sabha on Friday:
Tax sops to cost exchequer Rs 21.57 billion.
Tax rebate raised to 15 per cent on income between Rs 150,000 and Rs 500,000.
Maximum investment eligible for rebate raised from Rs 80,000 to Rs 1,00,000 which will include Rs 30,000 in infrastructure bonds.
Deduction in respect of dividend and income from mutual funds to be allowed under 80 L within the overall ceiling of Rs 9,000. TDS to be deducted only if the income exceeds Rs 1,000.
100 per cent deduction of export profits to SEZ for 5 years from April 1 2002. 50 per cent thereafter for two years.
Service tax on life insurance removed except risk premium.
Telephone removed from one-by-six scheme for tax returns but cellphone owners will be included.
Inland Air Travel Tax exemption extended to Andaman, Lakshadweep and Leh.
4 per cent excise duty removed on spares and accessories on bicycles, handpumps, toys and umbrellas, roofing tiles and pre-recorded audio cassettes.
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