Positive Pointers

- Excise duty on small cars, two and three wheelers reduced from 16% to 12%
Small car prices to drop by Rs 8000 – 16000 and bikes by Rs 1000 – 1800

- Custom duty on Set-Top Box components removed
May result in a drop in STB prices across IPTV, DTH and cable digital TV

- Tax relief on premium paid for parents Medical cover

- Tax filing date extended to September 30th

- Payment of Rent
An employee availing HRA can claim exception which is the least
of 50% of basic pay (40% for non metros) or the actual HRA or
rent paid in excess of 10% of basic pay

- Interest on Education Loan
Interest paid on loan taken for higher studies is exempt from tax for a
maximum of eight successive yrs. There is no limit for the amount
eligible for exemption

- Interest on Housing Loan
The interest paid upto 1.5 L on a home loan can be deducted from taxable income.
In Joint ownerships, both can claim deduction up to 1.5 L

Negative Pointers

- Short- Term Capital gains tax hiked to 15% from 10%
Profit margins of day traders and short-term players will be effected

- STT can no more be Claimed as Income Tax Rebate
STT is now like any other deductible expenditure

- PAN Card made Mandatory
It is required for personal loans, insurance and deposits.

- Excise duty of 1% on mobile phones imposed
Duty on phones costing between Rs 1000 and Rs 1500 will rise by Rs 10 and Rs 15