The Budget for 2006/07, which was presented by the Indian government on 28 February 2006, includes various amendments to the direct and indirect tax regimes. Details of the budgetary proposal affecting taxation are summarized below.
Generally, the direct tax proposals, when passed, are to take effect on 1 April 2006, whilst the indirect tax proposals are to have immediate effect.
Direct taxes
The following are some of the main direct tax proposals: