1. No increase in threshold limit of Rs 2,50,000.
2. Wrong perception about no income tax upto Rs. 5 lakh to all tax payer, income tax is still payable @ 5% on income upto Rs. 5 lakh
3. Rebate under section 87A increased from Rs. 2,500 to Rs. 12,500. And eligibility of total income not to exceed Rs. 3,50,000 increased to Rs 5,00,000. Thus the benefit will be to only those taxpayers whose total income doesn’t exceed Rs. 5,00,000.
4. The moment it exceeds Rs. 5,00,000 tax will start from Rs. 2,50,0000 at 5% up to Rs. 5,00,000 and 20% from Rs. 5,00,001 to Rs. 10,00,000
5. Tax rate would be 20% from Rs. 5,00,000 to Rs. 10,00,000 as per previous slab.
6. Standard deduction has been increased to Rs. 50,000 from Rs. 40,000.
7. Notional rent not applicable on the 2nd self occupied house.
8. Notional rent not applicable for 2 years after completion of the house/building.
9. Exemption from capital gain on sale of residential house under section 54 has been extended to purchase of 2 residential house subject to maximum capital gain of Rs. 2 crores. This option can be claimed once in a lifetime.
10. Deduction u/s 80IBA for developers of affordable housing scheme has been extended by one year for projects it is proposed to process all tax returns within 24 hours of their filing with refunds being issued immediately. They also intend to shift to all scrutiny assessments online through anonymised processing
11. Tax free gratuity limit increase to 20 Lacs from 10 Lacs.
12. Bonus will be applicable for workers earning 21000 monthly
13. Employer contribution in National Pension Scheme increased from 10% to 14%.
14. Interest subvention @ 2% to GST registered MSME.
15. Tds thresholds have been increased