No tax on income up to rupees 500000. the
benefit will be available through rebates reduce the tax burden of the small
households besides, specified investments up to rupees 1.5 lacs are tax free
as also interest up to 2 lacs on a home loan standard deduction is up from 40000
to 50000, which will benefit 30 million salary earners the threshold for levying tax deduction at source on term deposits up to Rs 40,000 increases from 10000
(1) Full tax rebate up to 5 lacs annual income after all deductions
The benefit will be to only those tax payers whose total income does not exceed 5 lacs the
benefit will be available through tax rebates reduce the tax burden of a small
households
(2) Ceiling limit of TDS under section 194A has increased from 10000 to
40000
No TDS on interest received from bank and post office deposits that
means interest accrued from fixed deposits of upto 670000 assuming an interest of 6% will not be taxed.
(3) Ceiling limit of TDS under
section 194I has increased from the 180000 to 240000
Tax related relief to individuals who are dependent on rental income.
(4) Standard deduction has
increase from 40000 to 50000
It is a fixed amount of deduction, which can be
reduced by salaried tax payers from their gross salary.
(5) If you own two self-occupied properties, there will be no-national rent on both properties.
Currently the no-national rent was
applicable on all properties but one even if they were occupied by the some
family this will benefit families that live apart due to work or other reasons.
(6) Exemption from capital gain on sale of residential house under section 54 has
increased from investment in one residential house to two residential houses (Maximum capital gain of 20 million)
This capital can be claimed once in
a lifetime
it's not that the government left the poor sections of the economy out of the conversation. the government has ensured on additional 10% of the reservation for the poor in government jobs and education.
* Additional
60000 crores has been allocated towards the MANREGA as well.
