20% tax on corporate MF unitholders

Finance Minister P Chidambaram has proposed to impose 20 per cent tax on corporate unit holders of mutual funds, in the Union Budget for 2004-05 he presented on Thursday.

• Equity related Mutual Fund will continue to be exempt from Dividend Tax.
• TDS and TCS being extended to more activities.
• Companies doing research on bio-technology to get 100 per cent tax exemption for ten years.
• 0.15 per cent tax on transaction on securities will be levied.
• Companies doing research on bio-technology to get 100 per cent tax exemption for ten years.
• 0.15 per cent tax on transaction on securities will be levied.
• Peak rate of Customs Duty to continue at 20 per cent.
• The concession of tax exemption of new industries in J and K extended by one more year to April 1, 2005.
• Reduction in customs duty in non-alloy steel from 15 per cent to ten per cent, excise duty raised from eight per cent to 12 per cent.
• Number of concessions on excise duty for agriculture.
• Tractors will be fully exempted from excise duty against existing 16 per cent.
• Dairy machinery also fully exempted. Spades and shovels also fully exempted.
• Health sector to be provided a number of conessions.
• In health sector, braille, braille typewriters, Braille computers fully exempted from customs duties.