rest of the nation — deserving or not! Consequently, your dividend income is no more tax free, and even dividends declared by your debt mutual funds and equity funds will now be taxable (grumble grumble!!). And should you get smart and try to save tax by investing in RBI bonds, your option is limited again, as you cannot invest more than Rs 2 lakh in these instruments.
The Gujarat earthquake surcharge ( two per cent ) has been abolished, but replaced with a defence surcharge of five per cent for those earning over Rs 60,000 per annum. All in all, your purse strings are bound to be tightened.

AT HOME
Each LPG cylinder is more expensive by Rs 40, which is a big gripe amongst housewives and kerosene will now cost Rs 1.50 more per litre.
Surprise, surprise! Petrol and diesel have become cheaper by Re 1 and Rs 0.50 respectively for the first time in ages.
Your cup that cheers may hold a bit more cheer as the excise duty on tea and coffee has been halved. However, if you’re into the ‘phoren’ variety, brace yourself... the import duty on tea and coffee just doubled to 100 per cent.
You know that power gets siphoned off to all sorts of minor ‘industries’, but now, the dear government wants you to pay for it! So now you will have to shell out for transmission and distribution losses (T&D) — watch your electricity bill climb.
The import duties on cardamom, pepper, rubber and pulses have been increased, though going on a clothes-buying spree may be marginally cheaper as the excise duties have dropped to 12 per cent from 16 per cent.
If you’re house-hunting, the deduction of interest paid on housing loans from taxable income has been extended beyond year 2003. So buying your dream house is one step closer to reality, though higher NRI inward investments may lead to real estate prices firming up. Move, and move fast!