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