1. Proposed to exempt senior citizen pensioners who are of 75 years of age or above from the requirement of filing of income tax if the full amount of tax payable has been deducted by the paying bank
2. The time-limit for re-opening of assessment is being reduced to 3 years from the current 6 years from the end of the relevant assessment year
3. The dividend paid to Real Estate Infrastructure Trusts or Infrastructure Investment Trusts (REIT/InvIT) shall be exempt from TDS
4. Proposed to the make the Income Tax Appellate Tribunal faceless and jurisdiction-less
5. Proposed to extend the eligibility period for claim of additional deduction for interest of Rs 1.5 lakh paid for loan taken for purchase of an affordable house to 31st March 2022
6. Proposed to notify rules for aligning the taxation of income arising on foreign retirement benefit account.
7. Proposed to allow tax exemption for maturity proceed of the ULIP having annual premium up to Rs 2.5 lakh
8. Proposed that the late deposit of employees’ contribution by the employer shall never be allowed as deduction to the employer.
9. Proposed to provide that a person in whose case TDS/TCS of Rs 50,000 or more has been made for the past two years and who has not filed return of income, the rate of TDS/TCS shall be at the double of the specified rate or 5%, whichever is higher
1. Relief in personal income-tax and simplification of taxation if they do not avail specified exemption/deductions
2. Proposed to provide an option to cooperative societies to be taxed at 22% plus 10% surcharge plus 4% cess, if they do not avail certain specified deduction/exemption. Further, it is also proposed to exempt these cooperative societies from Alternative Minimum Tax (AMT).
3. Proposed to shift to classical system of taxing dividend in the hands of shareholders.
4. The concessional rate of Tax Deductible at Source (TDS) at five per cent currently available under section 194LC and 194LD for borrowing from overseas is proposed to be extended for three years to 30th June 2023.
5. It is proposed to put an upper cap of seven lakh and fifty thousand rupees in a year on tax exempt employer's contribution in recognized provident fund, superannuation fund and NPS in the accounts of an employee
6. In order to reduce litigation, it is proposed to reduce rate for TDS in case of fees for technical services (other than professional services) to two per cent from existing ten per cent in order to align the same with the rate of TDS on works contract.
1. Threshold for applicability of lower corporate tax rate of 25% increased from Rs. 250 crore to Rs. 400 crore.
2. Enhanced interest deduction up to Rs. 3.5 lakh for purchase of an affordable house.
3. Deposit taking and systemically important non-deposit taking NBFCs can now pay tax in the year they receive interest for certain bad or doubtful debts.
4. TDS of 2% on cash withdrawal exceeding Rs. 1 crore in a year from a bank account to promote less cash economy.
5. Effective tax rate for individuals having taxable income above Rs. 2 crore has been increased.
6. No charges or MDR on specified digital mode of payments.These modes are to be compulsorily provided by large businesses.
7. Sabka Vishwas Legacy Dispute Resolution Scheme proposed for quick closure of service tax and excise related litigations.
8. Taxpayers having annual turnover of less than Rs. 5 crore can now file quarterly returns.
9. An electronic invoice system is proposed that will eventually eliminate the need for a separate e-way bill.
1. Individual taxpayers having taxable annual income up to Rs 5 lakhs will get full tax rebate
2. For salaried persons, standard deduction raised from the current Rs 40,000 to Rs 50,000.
3. TDS threshold on interest earned on bank/post office deposits is being raised from Rs 10,000 to Rs 40,000.
4. Further, the TDS threshold for deduction of tax on rent is proposed to be increased from Rs 1,80,000 to Rs 2,40,000 for providing relief to small taxpayers
5. The benefit of rollover of capital gains under section 54 of the Income Tax Act will be increased from investment in one residential house to two residential houses for a tax payer having capital gains up to Rs 2 crore.
6. For making more homes available under affordable housing, the benefits under Section 80-IBA of the Income Tax Act is being extended for one more year, i.e. to the housing projects approved till 31st March, 2020
1. No change in personal income tax slabs and rates.
2. Surcharge of 10% on income above Rs 50 lakh but less than Rs 1 cr, 15% on income above Rs 1 cr to continue.
3. Standard Deduction returns after a decade; Rs 40,000 to be allowed in lieu of transport allowance and medical expenses.
4. Interest income exemption on deposits with banks and post offices for senior citizens increased from Rs 10,000 to Rs 50,000.
5. Senior citizens will be able to claim benefit of deduction up to Rs 50,000 annually on health insurance premium and/or general medical expenditure incurred.
6. Govt introduces long-term capital gains on equity market; long-term capital gains over Rs 1 lakh to be taxed at 10%.
7. Education cess increased to 4% from 3%.
1. Reduced the existing rate of taxation for individual assesses between incomes of Rs 2.5 lakhs to Rs 5 lakhs to 5% from the present rate of 10%.
2. Surcharge of 15% for those whose annual income is above Rs 1 crore
3. A single one-page form for filing IT returns for taxable income up to Rs 5 lakh
4. Capital Gains Tax holding period reduced from 3 years to 2 years for real estate
5. In order to allow the people to claim the refund expeditiously, the time period for revising a tax return is being reduced to 12 months from completion of financial year, at par with the time period for filing of return.
6. Exempted capital gains arising out of transfer of a rupee denominated bond by a non-resident to a non-resident.
1. Raised the ceiling of tax rebate under section 87A from Rs 2000 to Rs 5000 to lessen tax burden on individuals with income upto Rs 5 lakhs.
2. Increased the limit of deduction of rent paid under section 80GG from Rs 24000 per annum to `60000, to provide relief to those who live in rented houses.
3. Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.
4. In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1.4.2016.
5. Limit for contribution of employer in recognized provident and superannuation fund of Rs 1.5 lakh per annum for taking tax benefit
6. Deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned in 2016-17 for first time home buyers, where house cost does not exceed Rs 50 lakh.
7. Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs 10 lakh per annum.
8. Surcharge to be raised from 12% to 15% on persons, other than companies, firms and cooperative societies having income above Rs 1 crore.
1. Increase in the limit of deduction in respect of health insurance premium from Rs 15,000 to Rs 25,000. For senior citizens the limit will stand increased to Rs 30,000 from the existing Rs 20,000.
2. For very senior citizens of the age of 80 years or more, who are not covered by health insurance, deduction of Rs 30,000 towards expenditure incurred on their treatment will be allowed.
3. The deduction limit of Rs 60,000 towards expenditure on account of specified diseases of serious nature to be enhanced to Rs 80,000 in case of very senior citizens.
4. Additional deduction of Rs 25,000 will be allowed for differently-abled persons under Section 80DD and Section 80U of the Income-tax Act.
5. The limit on deduction on account of contribution to a Pension Fund and the New Pension Scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.
6. All payments to the beneficiaries including interest payment on deposit under Sukanya Samriddhi Scheme will also be fully tax-exempt.
7. Transport allowance exemption is being increased from Rs 800 to Rs 1,600 per month.
8. For the benefit of senior citizens, service tax exemption will be provided on Varishta Bima Yojana.
9. Additional deduction of Rs 50,000 for contribution towards NPs over and above the limit of Rs 1.5 lakh under Section 80 C
1. New Tax slab (Men and Women)
2. New Tax slab (Senior Citizens)
3. New Tax slab (Very Senior Citizens)
1. Deduction under Rajiv Gandhi Equity Savings Scheme made available for three years against the existing period of one year. The income limit was also raised from Rs 10 lakh to Rs 12 lakh
2. A person taking a loan for his first home from a bank or a housing finance corporation up to Rs 25,00,000 during 1.4.2013 to 31.3.2014 was allowed to avail an additional deduction of interest of up to Rs 100,000.
3. The launch of Inflation Indexed Bonds or Inflation Indexed National Security Certificates was announced.
1. New Tax slab (Men & Women)
2. New Tax slab (Senior Citizens)
3. New Tax slab (Very Senior Citizens)
1. New Tax slabs (Men Up to 60 years)
2. New Tax slabs (Women Up to 60 years)
3. New Tax slabs (Senior Citizens) Note: The qualifying age reduced from 65 years to 60 years
1. New Tax slabs (Men Up to 65 years)
2. New Tax slabs (Women Up to 65 years)
3. New Tax slabs (Senior Citizens)
1. New tax slab (Male up to 65 years of age)
2. Female (Up to 65 years)
3. For Senior Citizens
1. New Tax slab (Male up to 65 years of age)
2. Female (Up to 65 years)
3. For Senior Citizens
1. Reverse mortgage scheme was introduced. Now, a senior citizen who is the owner of a house can avail of a monthly stream of income against the mortgage of his/her house, while remaining the owner and occupying the house throughout his/her lifetime, without repayment or servicing of the loan.
2. PAN made the sole identification number for all participants in the securities market.
3. New tax slabs (Male)
4. New tax slabs (Female)
5. New tax slabs (Senior Citizens)
1. Bank fixed deposits for a term of not less than five years were made eligible for tax deduction under Section 80C of the Income Tax Act. The existing limit of Rs 10,000 for pension funds under Section 80 CCC was removed and brought under the overall limit of Rs 100,000.
2. New tax slabs (Male up to 65 years)
3. New tax slabs (Female up to 65 years)
4. New tax slabs (Senior Citizens)
1. Proposal for introduction of Gold Exchange Traded Funds (ETFs) by mutual funds announced.
2. New tax slabs (Male)
3. New tax slabs (Female)
4. New tax slabs (Senior Citizens)
5. Standard deduction removed, and a new deduction limit of Rs 1 lakh under Section 80 C was introduced. The rebate under Section 88 is being eliminated and Section 80L is being omitted to reflect the new regime.
6. Exemption on interest earned on accounts maintained by Non Resident Indians re-introduced.
7. Fringe Benefits Tax was introduced to bring perquisites enjoyed by employees under the tax net.
1. Banks were allowed to offer education loans up to Rs 7.5 lakh (up from Rs 4 lakh) without the requirement of collateral.
2. Senior Citizens Savings Scheme was launched replacing the Varishta Pension Bima Yojana. The new scheme also offered an interest rate of 9%.
3. Basic exemption limit for income tax was fixed at Rs 1,00,000.
4. New Pension System (NPS) was brought under EET in which the contributions and accrual were exempt from tax; and only the terminal benefits were taxed.
5. Interest earned from a Non-Resident (External) Account and interest paid by banks to a Non-Resident or to a Not-Ordinarily Resident on deposits in foreign currency were brought under the tax net.
6. Gifts from unrelated persons, above the threshold limit of Rs 25,000, were to be treated as income and accordingly brought under the tax net. However, gifts received from blood relations, lineal ascendants and lineal descendants, and gifts received on certain occasion like marriage continued to be exempt.
7. Long-term capital gains from any securities transactions abolished altogether. Instead securities transaction tax (STT) at 0.15% was levied on transactions in securities on the stock exchanges.
8. Distribution tax on dividend at 12.5% was levied on debt-oriented mutual funds for individuals and HUF. For corporate unit holders, the rate was fixed at 20%.
