INCOME-TAX
- No change in threshold limit of Income tax.
- Corporate tax: Tax rate is proposed to reduced from 30% to 25% in forthcoming 4 years.
- For person having income more than INR 1 Crore in a year, a surcharge of 2% will be levied.
- No change in threshold limit of INR 150000/- u/s 80C
- Travelling allowance exemption limited increased from INR 800 pm to 1600 pm.
- Medical insurance premium exemption limit increase from INR 15000 to 25000/- p.a. u/s 80D
- for senior citizen, Medical insurance premium exemption limited increase from INR 10000/- to 30000/-
- for super senior citizens who have no medical insurance policy, a benefit of INR 30000/- is given for Medical expenditure incurred for them.
- Donation to Swacch Bharat Abhiyan: A benefit of 100% will be allowed for all donations.
- Sukanya Samriddhi Scheme: it will be covered u/s 80C and interest will be taxfree.
- PAN card mandatory for all the transactions above INR. 100000/-.
- Yoga to be included in charitable purpose for 12A registration
SERVICE-TAX
- Rate of Service Tax increased from 12.36% to 14%
- Proposed changes in ‘Negative-List-of-Service-tax.
CUSTOM AND EXCISE
- No changes in basic excise duty limited i.e. 1.5 crore.
- New central excise duty rate will be 12.5%.
- Import duty will be reduced on 22 goods.
WEALTH-TAX
- It is proposed to abolish wealth tax.
GENERAL
- GAAR (General Anti Avoidance Rules) postponed for 2 years
EFFECTS ON CONSUMERS AND BUSINESSES:
- leather goods like shoe, slippers etc will be expensive.
- Dining in Restaurant would be expensive.
- use of credit card would be costlier.
- Telephone and mobiles bill would be expensive.