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BUdget 2009, Tax, Tax Impact, IT Professionals, Salaried Group, Salary, Savings, Tax exemption, Income, Women, General, Senior Citizen,

Trying to compile the Budget 2009 impact on IT Professionals. Will update as and when I get information. Please add your findings.

Tax Brackets
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General
Up to Rs 160,000 Nil
Rs 160,001 to Rs 300,000 10 percent
Rs 300,001 to Rs 500,000 20 percent
Rs 500,001 and above 30 percent
Women
Up to Rs 190,000 Nil
Rs 190,001 to Rs 300,000 10 percent
Rs 300,001 to Rs 500,000 20 percent
Rs 500,001 and above 30 percent
Senior Citizens
Up to Rs 240,000 Nil
Rs 240,001 to Rs 300,000 10 percent
Rs 300,001 to Rs 500,000 20 percent
Rs 500,001 and above 30 percent

I believe that was the only key benefit for the salaried class. Some Key Highlights.

Common man gets over 15 schemes.
Women Income tax limits raised.
Farmers, exporters get sops.
Minimum Rs 30 lakh needed to be called wealthy .
Health budget up by Rs 4,000 cr.
6 new AIIMS in cities.
Defence budget unchanged; Army gets maximum share.
Fiscal deficit to widen on spending.
Life saving drugs, LCDs cheaper, Set-top-box costlier.
SUVs, petrol trucks to cost less.

Fringe Benefit Tax is rolled back. So IT companies may restructure their pay package for Top/Senior Management.

Yes, Commodity Transaction Tax has been rolled back as well. Was expecting that they increase the savings bracket from 1 lakh to bit more and tax bracket atleast to 2 lakhs. All the media were indicating that it happen for sure..Nothing on Home Loan?

Except the Salary bracket there is nothing for IT Professionals (Salaried Class). Some thing should have been done on the home loan front. They did speak about it prior to budget nothing came about in the actual one. Actualy any positives in home loan, and related savings on taxes would sure have bought investment into housing sector and inturn would have boosted the confidence of people. Looks an opportunity missed, but I still hope that FM has still got some tricks in his bag. Hopefully!!!

Iam of the opinion that only the salaried class pay their taxes regularly for some benefits they avail. I think their should be some more relaxation for the salaried class. Is the FM listening???

An announcement by the Finance Minister that the Fringe Benefit Tax would be abolished in the Budget was greeted with cheers in offices across the country. But the good news is short-lived.

The Government is all set to impose a tax on perks, which replaces the earlier Fringe Benefit Tax. If you are a part of the salaried class, you can expect to burn a hole in your pocket, paying tax on perks like residential accommodation and conveyance.


But there are some exemptions to the tax.

Telephone, mobile bill

Company provided local conveyance

Entertainment expenses like hosting dinners for clients

Exemption upto Rs 900 on personal car used for official purposes


But taxes on other perks will have to be borne by you.

Travelling and tour allowance

Free food and non-alcoholic beverages provided by the company

Gifts or vouchers received by the employee

Reimbursements on club memberships

Company provided house

The announcement is yet to be made by the Finance Ministry, but will have to be paid with retrospective effect from April 1, 2010.