1. No change in income tax slabs has been announced by the FM Jaitley.
2. Now LTCG on shares on stock exchange will be taxable @10% for gain exceeding Rs. 1,00,000 and the benefit of indexation will also not be given. This change seems a bit inappropriate because since the STT is still there and STT was introduced to set LTCG on shares free. Capital gains made on shares until Jan 31 will be grandfathered. So,with this tax regime focus may shift to Trading instead of investing.
3. Standard deduction for salaried class is prescribed upto 40,000/-in lieu of transport and medical expenses.
4. Exemption of interest income on deposits with banks and post offices to be increased from Rs. 10,000/- to Rs. 50,000/-and TDS shall not be required to be deducted on such income, under section 194A. This benefit shall be available also for interest from all fixed deposits schemes and recurring deposit schemes.
5. U/S 80DDB for deduction for life threatening Diseases, for Senior and very senior Citizen both deduction to be increased to Rs. 1,00,000.
6. Raising the limit of deduction for health insurance premium and/ or medical expenditure from Rs. 30,000/- to Rs. 50,000/-, under section 80D. All senior citizens will now be able to claim benefit of deduction up to Rs. 50,000/- per annum in respect of any health insurance premium and/or any general medical expenditure incurred.
7. Education and health cess to be increased from 3% to 4%.
8. It is Proposed to tax Mutual Fund Divided @10%.
9. 99% MSME to be taxed at 25%. Corporate tax on domestic companies having turnover upto 250cr. will be reduced to 25% from 30%.
10. There are certain changes in Customs Act 1962, the name of the board CBEC will be changed to CBIC (Central board of Indirect Taxes & customs).
11. Custom Duty on Mobile to be raised to 20% from earler 15% and on various parts and accessories is to be 15%.
12. Custom Duty on Raw Cashew is to be Reduced to 2.5%.
(The author can be reached at bkarnani1@gmail.com)
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Thank you so much Rohit Jain for the support.
Yes, you are absolutely correct , corporate tax on domestic companies having turnover upto 250cr. will be reduced to 25% from 30%.
Nice article bharti. For point 9, 25% tax rates is not only for msme but for other domestic companies as well having turnover less than 250 crore. Correct me if i am wrong.