Tax proposals to provide relief to
small taxpayers through rebates. We acknowledge the role of the taxpayer
in nation building says Jaitley. Relief to those in rented houses:
Deduction raised from Rs 24,000 to Rs 60,000 under Section 88G. Increase
in HRA to Rs 60,000 Per annum from Rs. 24000. 2 crore tax payers to get
relief of Rs 3,000 in case of income under Rs 5 lakh. Tax ceiling of
income group below Rs. 5 lakhs has been increased from Rs.2000 to Rs.
5000.
While presenting the Union Budget 2016,
Finance Minister Arun Jaitley said that the global economy is in
serious crisis and financial markets have been battered in the past one
year. However, India’s held its ground firm as the growth is
extraordinary high and the country converted difficulties and challenges
into opportunities. The financial year 2016-17 will face an additional
burden due to implementation of the Seventh Pay Commission and OROP. On
inflation, Arun Jaitley in his speech said that CPI inflation was 9.4
per cent in the past 3 years of previous government. The figure has come
down to 5.5 per cent now.
Rest of Taxes remain same for income groups above Rs. 5 Lakhs
- No changes have been made to existing income tax slabs
- Rs 1,000 crore allocated for new EPF (Employees’ Provident Fund) scheme
- Govt. will pay EPF contribution of 8.33% for all new employees for first three years
- Deduction for rent paid will be raised from Rs 24,000 to Rs 60,000 to benefit those living in rented houses.
- Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
- Service tax exempted for housing construction of houses less than 60 sq. m
- 15 per cent surcharge on income above Rs. 1 crore
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