India Budget 2007 - Highlights

Proposals for Personal Taxes

• TDS exemption limit increased from Rs. 5,000 to Rs. 10,000 on interest from Banks and Post Offices.
• TDS made applicable on interest on 8% Savings (Taxable) Bonds.
• Certain personal effects such as paintings, sculptures proposed to be covered within the definition of capital assets and brought within the ambit of capital gains tax.
  

Tax Rates

• Introduction of secondary and higher education cess of 1% resulting in increase in education cess from 2% to 3%. The increase in education cess has resulted into marginal increase in overall tax rates.
• No surcharge to be levied on domestic companies, partnership firms andforeign companies having total income up to Rs. 1,00,00,000, resulting in an effective tax rate of 30.90% for domestic companies and firms and 41.20% for foreign companies.
• Effective tax rate for domestic companies and firms having taxable income exceeding Rs. 1,00,00,000 increased marginally from 33.66% to 33.99% and for foreign companies from 41.82% to 42.23%.
• Basic exemption limit for individuals / HUFs increased by Rs. 10,000.
• Deduction for entire amount of interest paid on a loan taken for higher education of spouse and children.
• The limit of deduction under section 80D for premium towards mediclaim increased from Rs. 10,000 to Rs. 15,000.
  

read more at source (Manupathra)