Tax proposals from Chidambaram

Here are the highlights of tax proposals by Finance Minister P Chidambaram, who have left the taxpayer unhappy:

Budget(2007-2008) Special::

# Rs 1.95 lakh exemption for senior citizens

# I-T limit for women up at Rs 1.45 lakh

# I-T exemption limit hiked by Rs 10,000

# No change in Income Tax rates

# Dividend distribution tax raised from 12.5 to 15 per cent.

# ESOPs to be brought under FBT.

# Expenditure on samples and free distribution items to be exempted from fringe benefit tax.

# Additional revenue from direct taxes to yield Rs 3000 crore and indirect taxes revenue neutral.

# Tax exemption on aviation turbine fuel sold to turbo prop aircraft extended to all small aircraft less than 40,000 kg.

# Withdrawals by central and state governments exempted from Banking Cash Transaction Tax. The limit for individuals and HUF raised from Rs 25,000 to Rs 50,000. Corporate Tax Rates Unchanged

# No surcharge for SMEs (firms with a taxable income of Rs 1 crore (Rs 10 million) or less).

# Peak Rate For Non Agricultural Products From 12.5% to 10%

# Second and defective steel from 20% to 10%

# No Duty on Coking Coal

# Customs duty on Polyster Fibre and Yarns down to 7.5%

# Duty on Cut and Polished diamonds from 5 to 3%

# Dredgers to be exempt from import duty

# Duty on Drip Irrigation, Agricultural Sprinklers and Food processing machinery from 7.5% to 5%

# General rate on medical equipment to 7.5%

# Duty on Sunflower Oil down 15 percentage points

# Duty on pet foods down from 30 to 20%

# Excise & Service Tax: No change in Excise and Service Tax Rates

# Ad-valorem component on petrol and diesel down from 8% to 6%

# Excise & Service Tax:Relief for deserving cases in job creating sectors

# SSIs exemption from Rs 1 crore to Rs 1.5 crore

# Exemption limit for small service providers from Rs 4 lakh to Rs 8 lakh. Two lakh assessees will go out of service tax. Revenue loss will be Rs 800 crore

# Two lakh people to benefit out of service tax exemption. Govt to lose Rs 800 crore as a result.

# Service tax on Residents Welfare Associations whose members contribute more than Rs 3,000.

# Surcharge on Corporate income tax on companies below Rs one crore removed.

# Tax free bonds to be issued by state-owned urban local bodies.

# Five year tax holiday for two, three, four star hotels and convention centres with a seating capacity of 3,000 in NCT of Delhi, Gurgaon, Ghaziabad, Faridabad and Gautam

# Minimum Alternate Tax being extended to I-T companies.

# Benefits of investment in venture capital funds confined to IT, bio-technology, nano-technology, seed research, dairy among some others.