- Income tax slab is not changed
- Maximum deduction under section 87A increased to Rs. 5,000.
- Maximum limit of deduction of rent under section 80GG is increased from Rs. 24,000 to Rs. 60,000 p.a.
- Lowering of Corporate IT rate for companies not exceeding Rs. 5 crore turnover to 25% plus surcharge.
- Tax holiday for startups for three of five years of setting up the company
- 40% of withdrawal at the time of retirement under National Pension Scheme to be tax exempt.
- Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
- 1 per cent service charge on purchase of luxury cars over Rs. 10 lakh and in-cash purchase of goods and services over Rs. 2 lakh.
- Infrastructure and agriculture cess to be levied.
- Dividend Tax rate of 10% for individuals/HUF if dividend in excess of 10 lakh/annum
- To lower penalty to 50% of tax in case of under-reporting of income.
- 15% surcharge on income tax for those with incomes exceeding 1 crore per annum
- No Service Tax for houses built under 60 square metres.
- Excise duty on tobacco increased by 10-15 per cent.
- 4% high capacity tax for SUVs.
- Propose to abolish 14 different cesses levied by ministers
- STT increase in options
- Creating 11 new benches of Indirect Tax tribunal
Other Important Points
- Amendment to the Companies Act to ensure speedy registration and boost start-ups.
- Government to provide health insurance of upto Rs. 1 lakh per family; top up of Rs. 35,000 for people above 60 years.
- Rs. 1,700 crore for 1500 multi-skill development centres.
- Small shops should be given the choice to remain open on all 7 days a week.
- 10,000 km of National Highway, 50,000 state highways to be converted to National Highway
- Employee Provident Fund (EPF) contribution by government of 8.33% for new employees for 3 yrs.
- FY17 fiscal deficit target at 3.5%