Withdrawal from savings bank accounts will now be totally exempted, withdrawal beyond Rs. 25,000 from current accounts by individuals and Rs. one lakh by companies and others will attract the 0.1 per cent tax.

Withdrawal from term deposits will also attract this tax.

Giving further relief to women and senior citizens, Finance Minister P Chidambaram has raised the income tax exemption limit for women by another Rs. 10,000 to Rs. 1,35,000 and for senior citizens by additional Rs. 35,000 to Rs. 1,85,000.

In the budget proposals, the Finance Minister had proposed to hike exemption limit for women to Rs. 1,25,000 and senior citizens to Rs. 1,50,000. Correspondingly, the income tax rates have been revised for women and senior citizens, Chidambaran said adding women earning between Rs. 1,35,000 and Rs. 1,50,000 will attract 10 per cent tax and between Rs. 1,50,000 and Rs. 2,50,000 will attract 20 per cent. Beyond Rs. 2,50,000, it would be 30 per cent.

For senior citizens, income between Rs. 1,85,000 and Rs.2,50,000 will attract 20 per cent and beyond Rs. 2,50,000, it would be 30 per cent.

In the Finance Bill, Chidambaram had originally proposed 0.1 per cent banking cash transaction tax on all withdrawals beyond Rs. 10,000.

Expenditure on advertisement has been excluded from levy of fringe benefit tax. But any privilege, service or amenity provided directly or indirectly by an employer by way of reimbursement or otherwise to employees will attract FBT, which is to be paid by employers.

Similarly, any free or concessional ticket provided by the employer for private journeys of employees or their family members and any contribution to an approved superannuation fund for employees will come under the purview of FBT.

Entertainment, provision of hospitality of every kind by the employer to any person, whether by way of provision of food or beverages or in any other manner will attract FBT.

This includes any expenditure on or payment for food or beverages provided to employees in office or factories and any expenditure or payment through paid vouchers usable at eating joints or outlets and conference, other than fee for participation by employees.

Expenditure on employees welfare will attract FBT but not the expenditure incurred or payment made to fulfill any statutory obligation or mitigate occupational hazard or provide first aid facilities in hospital or dispensary run by employers.

Other expenditures that will come under FBT are conveyance, tour and travel including foreign travel, use of hotel, boarding and lodging facilities, repair, running, maintenance of motorcars and aircraft and the amount depreciation on them.

Use of telephone including mobile phone will attract FBT but expenditure on leased telephone line will be exempt.

Maintenance of any accommodation like guest house except those used for training purposes, festival celebrations, use of health club and similar facilities, use of any other club facilities, gifts and scholarships will come under FBT.