no changes in personal income-tax rates for 2015-16 but extended benefits to middle-class by increasing the limit of deduction on health insurance premium from Rs 15,000 to Rs 20,000
Transport allowance exemption is being increased from Rs.800 to Rs.1,600 per month. Total exemption per annum will now stand at Rs 19200.
For senior citizens, it will go up from Rs 20,000 to Rs 30,000 and for those above 80 years, not covered by health insurance, deduction of Rs 30,000 towards expenditure on medical treatment will be allowed
Combining these incentives with others including an enhanced deduction of Rs 1.5 lakh on account of contribution to pension fund as against Rs 1 lakh now, the relief of tax deductions under various sections, including 80C and 80CCD, go up to Rs 4.42 lakh
5 % reduction in corporate tax over next four years
abolished wealth tax and
an additional 2 percent surcharge on super-rich individuals - With the levy of 2 percent additional surcharge, the total surcharge on 'super-rich' individuals with an income of over Rs 1 crore, becomes 12 percent as against 10 percent now. In the case of domestic companies having income between Rs 1 crore and Rs 10 crore, it will be 7 per cent and 12 per cent for firms with income above Rs 10 crore
The following is the list of most important tax related announcements made by the Finance Minister:
* No change in rate of personal tax
* Exemption to individuals tax payers to continue to facilitate savings
* Health Insurance Premium deduction hiked from Rs 15,000 to Rs 25,000; for senior citizens to Rs 30,000
* Deduction limit of Rs 60,000 with respect to specified decease of serious nature enhanced
to Rs 80,000 in case of senior citizen
* Additional deduction of Rs 25,000 allowed for differently-abled persons
* Transport allowance exemption hiked to Rs 1,600, from Rs 800 per month
* Limit on deduction on account of contribution to a pension fund and the new pension scheme increased from Rs 1 lakh to Rs 1.5 lakh
* Additional deduction of Rs 50,000 for contribution to the new pension scheme u/s 80CCD
* Tax payers to get income tax benefit of Rs 4.44 lakh
* Interest payment on Sukanya Smriti Plan exempted from tax
* Service-tax exemption on Varishtha Bima Yojana
* Girl child saving plan already eligible for tax deduction
* Additional 2 percent surcharge on people earning over Rs 1 crore
* To lower corporate Tax to 25 percent over next four years, starting from next financial year
* Wealth tax abolished
* Direct Taxes Code (DTC) dropped
* GAAR implementation deferred by 2 years to April 2017
* Service Tax rate hiked to 14 percent, from 12.36 percent
* Tax free bonds for roads, railways, irrigation projects
* To introduce 2 percent Swachh Bharat cess on Service Tax
* Negative List under service-tax is being slightly pruned to widen the tax base
* To include yoga in charitable purposes in income tax act
* 300% penalty on concealing income
* Black money holders to be imprisoned up to 10 years
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