The Kelkar Impact

On India IncTax on Indian firms cut to Biggest beneficiaries: Giants which30 per cent from 36.75 pay more than 30 per cent of book profits as tax. That includes all oil companies and big banks, ITC, Bhel, Hero Honda, RIL and HLL. Biggest hit: those which pay less, like all IT companies.Their liability will double.Dividend tax abolition Immediate gain Rs 2,500 crore.Change of depreciation norms Higher tax and cash outgo initiallyRemoval of exemptions & holiday Extra tax of Rs 3,000 croreOn the Indian taxpayerOnly those earning above Over 21 million assessees, or three-Rs 1 lakh to be taxed; no quarters out of tax net, but have tostandard deduction file returns under one-by-sixSections 88, 80L and 10 Post Office NSCs, PPF, power bonds,exemptions to go; three-year some mutual funds lose charm; mayphaseout of housing sops hit household savingsNo tax on dividend income, Corrects Sinha’s mistake; to promotelong-term gains on equity retail investment in equity On the Indian governmentImplement farm income tax Plug a leakage of Rs 1,000 crore, enact new law under Art 252Scrapping standard deduction Revenue gain of Rs 9,500 croreAbolition of sec 88 rebates, Revenue gain of Rs 5,000 crorehousing sopsCutting corporation tax Loss of Rs 4,000 croreAbolition of wealth tax, Loss of Rs 3,645 croreMAT, dividend tax Depreciation norms change Gain of Rs 5,000 crore