BUDGET - BMR Advisors

• The amendment to take effect from April 1, 2001Commodities Transaction Tax (CTT)• CTT on commodities traded on recognized associationsintroduced• Tax payable on the value of the transaction as follows:Transaction Rate Payable bySale of an option in goods orin commodity derivative 0.017 percent SellerSale of an option in goods or incommodity derivativewhere option is exercised0.125 percent PurchaserSale of any other commodityderivative 0.017 percent SellerOther proposals• Banking cash transaction tax withdrawn• STT and CTT allowed as a deduction in computing taxliability• Weighted deduction of 125 percent available on paymentsfor scientific research to a company, subject to certainconditions• Payments in excess of Rs 20,000 in cash to a person on asingle day not allowed as deduction. If the expenditure isincurred in one year and paid in the subsequent year, theamount allowed as a deduction in the prior year will betreated as income in the year of payment• Conversion of Foreign Currency Exchangeable Bonds intoequity shares not regarded as transfer for capital gains tax• Following benefits excluded from FBT:– Pre-paid electronic meal card provided to employeessubject to certain conditions– Crèche facility– Sponsorship to sportsman employee– Sports events for the employees– Maintenance of guest houseindiaBUDGET200857