| Item | Existing | Proposed |
| Corporate tax | | |
| Tax on dividend | 10% in the hand of the investor | Abolish it, not be be taxed at the hands of unitholder and shareholder |
| Tariff on imports | NA | Bring down to 10% |
| Long term capital gains tax on equities | 30% | Abolish it |
| Minimum alternate tax (u/s 115 JB) | NA | Remove |
| Corporate tax | 36.75% | Reduce to 30% for domestic cos; 35% for foreign cos |
| Depreciation rate for general plant and machinery | 25% | 15% |
| Business loss | Cannot be carried forward indefinitely | Can be carried forward indefinitely |
| Personal tax | | |
| Personal | First slab begins at Rs 50,000 and second at Rs 1.5 lakh | Have two basic rates: 20% and 30%, first slab beginning at Rs 1 lakh and second at Rs 4 lakh |
| Section 88 rebate | Available for those with earnings below Rs 5 lakh | Knock off on all schemes |
| Section 80 L for interest and dividends | Available for all | Knock off tax deductions |
| Pension funds | Tax deduction available. Ceiling at Rs 10,000 | Continue the deduction. Ceiling raised to Rs 20,000 |
| Standard deduction | 16% | To abolish |
| Exemption for conveyance allowance | NA | To continue, but ceiling of Rs 9600 |
| Section 10 for interest income from bonds, securities, debentures | NA | Remove exemption |
| Housing | Rs 1.5 lakh | Deduction to be reduced to Rs 50,000 |
| Section 80E for repayment of educational expenses | NA | Can continue. In some cases, allow as tax rebate at 20% to maximum Rs 4,000. |
| Mortgage interest in housing loans | Rs 2 lakh per year | Reduced to Rs 1 lakh in 04-05, Rs 50,000 in 05-06 and nil thereafter |