Budget 2006-2007Highlights.

(1) There are no changes in the rates of personal income tax Slabs and corporate income tax rate.
(2) The 3/2/2006One by six scheme for filing of income tax returns has been abolished.
(3) Services tax net to be increased which include ATM operations, maintenance and management, share transfers, registration,international air travel excluding economy class, sponsorship other sports events, auctioneers, ship management and travel on cruise.
(4) Fixed deposits in scheduled commercial banks with at least five year maturity will get tax exemption for savings under section 80C of the Income Tax Act.
(5) The Rs 10,000 exemption limit for investment in pension funds under Section 80CCC has been removed but these investments have been brought under Sec.80C subject to a ceiling of Rs 1 lakh.
(6) The limit of Rs 10,000 in pension funds under Section 80CCC has been removed but these investments would be brought under Sec.80C subject to a ceiling of Rs 1 lakh.
(7) The Service tax has been raised to 12% from 10%.
(8) From now on Donations to only religious institutions will be exempted from tax.
(9) Minimum alternative tax (MAT)on corporates increased from existing 7.5 per cent to 10 per cent.
(10) More transactions to come under PAN.
(11) Reduction in excise duty for compact cars would make these more affordable to the extent the auto manufacturer passes on the same to the consumer. Some Car manufacturers have already reduced their prices eg. Tata India, Santro etc.
(12) The controversial FBT was brought down.
(13) Excise duty on cigarettes increased by 5% whcih will mostly be passed on to the consumer.
(14) Banking cash transaction tax introduced last year will continue. In one bank branch in Chandni Chowk, laundering to the tune of Rs 1,500 crore was detected.