Multiple choice

Which of the following statement(s) is/are true about the Union Budget 2008-09?

  1. No change in corporate income tax rates
  2. Short Term Capital gain tax increase to 25%
  3. Banking Cash transaction tax withdrawn w.e.f. April 1, 2009

  1. Only 1

  2. Only 2

  3. 1 and 2 only

  4. 1 and 3 only

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Union Budget 2008-09 maintained corporate income tax rates (no change in Statement 1) and announced withdrawal of Banking Cash Transaction Tax (BCTT) effective April 1, 2009 (Statement 3 correct). Statement 2 is incorrect as Short Term Capital Gains tax was not increased to 25% - it remained at 15% for securities transactions.

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