Karnataka Budget Tax Highlights [2009 - 2010]

Tax Proposals

• Increase in tax collection in 2008-09 expected to be 10.7%.

• Total revenue from Commercial Taxes during 2009-10 expected to be Rs. 25125 crores.

• Tax exemption on food grains and pulses extended for one more year.
• Tax on tamarind and soap-nut reduced to 2%.
• Tax on coconuts, copra and desiccated coconut powder reduced to 2%.
• Tax on arecanut reduced to 2%.
• Baje exempted from tax.
• Footwear costing upto Rs. 100 exempted from tax.
• 4% tax concession on some more goods sold through canteen stores department.
• 4% taxes on all tread rubber used in re-treading of tyres.

• Tax exemption on 75000 kilo liters of diesel sold to fishermen.

• Tax exemption limit increased to Rs. 499/-.
• Levy of tax on actual rents.
• Tax slabs revised – 4% on room rents of Rs. 500/- to Rs. 1000/-, 6% on room rents exceeding Rs. 1000/- upto Rs. 2000/- and 10% on room rents exceeding Rs. 2000/-.
• Tax on marriage halls reduced to 10%.
• Tax on exhibition halls reduced to 10%.

• Persons with monthly salaries upto Rs. 10000/- exempt from tax.
• Branches of educational institutions running schools and colleges upto 12th standard exempt from tax.

• 10% tax on sports involving proprietary teams.
• Tax on cinemas reduced to 30%.

• Tax collection expected to reach target of Rs. 5627 crores for 2008-09.
• Expected collection for 2009-10 Rs. 6565 crores.

• Tax collection expected to be Rs. 3318 crores for 2008-09.
• Stamp duty on all transfer of moveable properties reduced from 7.5% to 6% resulting in revenue loss of Rs. 400 crores.
• Stamp duty rates modified.
• On agreements not involving transfer of immoveable property 0.25% of agreement value.
• 1% for joint development agreement.
• 6% for arbitration award.
• 0.5% with a limit of Rs. 10,000 on mortgage.
• Rs. 500 for duplicate registration.
• 1% to 6% on lease of immovable properties.
• 1% on General Power of Attorney to developers and Rs. 200 on other General Power of Attorney.
• 5% on transfer of property through release.

• Estimated collection for 2009-10 – Rs. 2063 crores.
• Lifetime tax on electric motor vehicles reduced to 4%.