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Budget 2001-02: Highlights relating to the TV and entertainment sector

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The government has made the following announcements relating to the entertainment, film and television industry in the Union Budget announced today:

*Customs duties on cinematographic equipment have been shaved. Import duty on cameras, projectors and related equipment has been reduced from 25 per cent to 15 per cent.

* Foreign telecasting companies will have to pay an income tax in India, no longer the presumptive 10 per cent tax and there will also be a 5 per cent service tax on broadcasting companies.

* TV game show winnings will be taxed 30 per cent and the deduction will be at source.

* All surcharge on corporate tax is abolished, except the 2 per cent surcharge for Gujarat earth quake relief.

* Dividend tax has been reduced from 20 per cent to 10 per cent.

* Foreign investment limit in the company under portfolio Investment route by FII is raised from 40 per cent to 49 per cent.

* An effort has been made to boost investments in the capital markets. Bank savings rate has been reduced by one to two per cent. Exemption from capital gains tax for amounts invested in the primary market after sale of older equity holding.

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