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Surcharge on personal income tax abolished
February 28, 2003 14:10 IST
The Union Budget for 2003-04 proposes no change in income and corporate tax rates, abolished the 5 per cent surcharge on personal income tax and raised standard deduction while retaining sops on home loans.
Presenting his maiden Budget in the Lok Sabha, Finance Minister Jaswant Singh imposed an additional excise duty of Rs 1.50 per litre on light diesel and 50 paise cess per litre on diesel and motor spirit along with a three-tier excise duty structure and reduction of peak customs duty from 30 per cent to 25 per cent.
The new proposals on direct taxes will result in revenue loss of Rs 2,955 crore (Rs 29.55 billion) while the proposals on indirect taxes will result in gain of Rs 3,294 crore (Rs 32.94 billion).
The finance minister estimated the total revenue receipts at Rs 2,53,935 crore (Rs 2539.35 billion) and fiscal defict at Rs 1,53,637 crore (Rs 1536.37 billion), which is 5.6 per cent of gross domestic product.