*Personal income-tax exemption limit raised to Rs 28000.
*Income-tax rates stashed.
*Maximum rate reduced from 50 per cent to-40 per cent.
“Number of slabs reduced. Tax incidence reduced at all levels.
*Firms to be taxed at a fat rate of 40 per cent.
*Taxation of firms rationalized to avoid double taxation.
Deduction for salary and interest to partners *Partners not be taxed separately on shave income.
**No change in corporate taxes.
*Surcharge in the case of companies to continue.
**Surcharge for non-corporate taxpayers will apply only to those with income above Rs. one lakh.
“*Relief in respect of medical treatment of handicapped dependents entranced.
Exemption of perquisites in the form of medical treatment provided by employers in the private hospitals
Enhanced tax relief in aspect of medical insurance
“Exemption of compensation receives by the victims of Bhopal gas leak disaster.
“*Withdrawal of deductions under sections 30CCA and 80CCB for savings in National Savings Scheme Annuity plan of LIC and equality linked savings scheme of national funds UTI.
Deduction under section 80L for un-agreed incomes like interest dividend or income from units of UTI withdrawn
“Minors Income except wage income to be clubbed with that of parents
*Capital gains to be taxed at a flat rate of 20 per cent for individuals and HUFs (Hindu undivided families) and 40 per cent for companies and firms
*Private sector mutual funds authorised by SEBI to be exempt from Income tax.
Income of foreign currency convertible bonds of Indian companies to be taxes data concessional fate of 10 percent.
All non-resident to be protected against foreign exchange fluctuation in respect of capital gains arising on investments in India.
Tax deductions at source interest from time deposit in banks info from commission or brokerage withdrawn
* Wealth tax to be levied only on non-productive assets
All companies individuals and Hindu undivided families to pay wealth tax at the rate of one per cent.
Expenditure tax on air-conditioned restaurants withdrawn
Excise duty on cement goes up from Rs. 215 to Rs 290 per tone.
*Duty on cement produced in mini cement plants also goes up from Rs. 90 to Rs. 165 per tone.
* Excise duty on paints raised from present levels of 15 and 30 per cent respectively.
A uniform ad valorem levy of 10 per cent proposed for major non-ferrous mental.
*Iron forgings and certain other steel products will have a uniform excise duty of 10 per cent.
For primary and semi-finished forms of iron and steel specific rates of duty will be retained and will be raised from the current range of Rs. 300 .Rs.1800 pr tone toss. 400 Rs. 2000 per tone
*Excise duty rate on watches raised from five to 10 per cent *Increase in duty on paints by percentage points.
“*Duty up by five per cent on serial in wires and cables.
“Relief extended to glass Conner industries.
* Full exemption to panel doors.
*Doors windows made of plastics and iron and steel fully exempted.
Duty on pre-fabricated buildings reduced from 15 per cent 10 five per cent.
Red mud bricks and tiles light weight concrete building blocks fully exempted.
* Special excise duty raised from 10 per cent to 15 percent with the exception of petroleum products and certain consumer durable.
“Export duty of 10 per cent imposed on finished leather and unpolished granite and five per cent on iron ore.
* Auxiliary duty slabs reduced to four.
“Duty on capital goods for electronics industries including project imports reduced from 60 per cent t0 50 per cent
*Glazed newsprint fully exempted.
“Import duty on certain petrochemicals reduced.
*Government proposes to introduce a new gold bond scheme to mobilize the idle gold resources of ordinary citizens to supplement official reserves.
Budgetary deficit for 1992-93 reduced to Rs 34408 crore from Rs. 37792 crore in 1991-92.
Taking direct and indirect tax proposals together the Center will have an revenue loss of Rs 517 crore while the states will gain Rs 1500 crore
Article extracted from this publication >> March 13, 1992
