New Delhi: Following are the highlights of new direct tax rules announced today (Jan 8, 2004). These rules will be effective from April 1, 2004.

- No IT returns for salaried income upto Rs 1.5 lakh.

- Salary certificate to be treated as return.

- Pensioners out of the purview of 1/6 scheme.

- Infrastructure projects get exemption under 10(23G).

- Single certificate for TDS (Tax Deducted at Source) exemption.

- Housing loan rates cut for perquisite valuation.

- Paperless Income Tax returns through Internet.

- Computer network to be expanded to cover IT offices.

- Challan forms for TDS payment cut to one.

Following are the highlights of excise and customs duty concessions announced today:

- Peak customs duty on non-farm goods cut by 5 per cent to 20 per cent.

- 4 per cent Special Additional Duty on customs abolished.

- Excise duty on aviation turbine fuel halved to 8 per cent.

- Inland Air Travel Tax of 15 per cent abolished.

- Customs duty on cell phones halved to 5 per cent.

- Excise duty on computers halved to 8 per cent.

- Customs duty on coal cut by 10 per cent to 15 per cent.

- Customs duty on power equipment cut by 15 per cent to 10 per cent.

- Duty on life saving drugs and equipment cut to 5 per cent.

- Baggage rules liberalised.

- Laptops as part of baggage exempted from duty.

Following are the changes in direct taxes with effect from January 9, 2004

I. Overall duty structure (Customs)

1. Peak rate of customs duty on non-agricultural goods is being reduced from 25 per cent to 20 per cent.

2. Special additional duty of customs (SAD) of four per cent is being abolished.

3. Customs duty on project imports with investment of at least Rs five crores, in plant and machinery, is being reduced from 25 per cent to 10 per cent.

4. Customs duty on coal is being reduced from 25 per cent to 15 per cent.

5. Customs duty on nickel and articles thereof is being reduced from 10 per cent to 5 per cent.

II. Power sector

1. Customs duty on power transmission and distribution projects is being reduced from 25 per cent to 10 per cent.

2. Customs duty on electricity meters is being reduced from 25 per cent to 15 per cent.