- There is no tax upto Rs.2 lakhs and for senior citizens, it is 2.50 lakhs. For very senior citizens above 80 need not pay tax upto Rs.5 lakhs. Individual will have to pay 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh; 20 per cent between Rs 5 lakh and Rs 10 lakh; and 30 per cent for above Rs 10 lakh.
- The Budget also exempt up to Rs 10,000 of interest income from tax.
- For preventive health check up, additional Rs.5000 would be exempted above medical insurance rebate.
- Senior citizens who do not have any income from business are propo sed to be exempted from payment of advance tax, reducing their compliance burden.
- New equity savings scheme to provide for income tax deduction of 50 per cent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
- One per cent loan subsidy on loans upto 15 lakh for housing loans.
- Cuts securities transaction tax by 20% for stock market delivery orders.
- Service Tax has been hiked from 10% to 12%. Also, its net has been widened and all services barring 17 would now be taxed. Corporate Tax structure has been left unchanged.
- Central Excise duty raised from 10 to 12 per cent.
- Cinema industry exempted from service tax.
- Withholding tax on external commercial borrowings reduced from 20 per cent to five per cent for power, airlines, roads, bridges, affordable houses and fertiliser sectors
C. R. Venkata Ramani