Budget 2004-2005- Amendments
Parliament on 27th August 2004, passed the Finance Bill, 2004, with 55 amendments.
1. A resident individual having a total income of up to Rs 1,11,250 would be required to give tax of Rs 11,250.
2. The tax exemption on lease payments for acquisition of aircraft would now be withdrawn for agreements entered into after April 1, 2005.
3. The provisions relating to taxation of "gifts" from unrelated persons have also been altered to provide that any sum received by an individual or Hindu undivided family (HUF) from an unrelated person without consideration is to be taxed if the amount exceeds Rs 25,000. The only exceptions are the sums received on the occasion of marriage or under a will or by way of inheritance or in contemplation of death.
4. The proposed move to tax the interest on non-resident external (NRE) and foreign currency non-resident (FCNR) has been deferred from September 1, 2004, to April 1, 2005.