Highlights of Union Budget (2016-17)

1. No change in personal Income Tax slabs
2. Relief for tax payers who earn below Rs 5 lakh; ceiling of rebate u/s 87A raised to Rs 5,000 from Rs 2,000
3. Deductions u/s 80GG for rent paid increased from 24000 to 60000
4. First home buyers to get additional deduction of Rs 50,000 on interest for loan up to Rs 35 lakh; cost of house should not be more than Rs 50 lakh
5. Excise duty raised from 10 to 15 per cent on tobacco products other than beedis
6. 1 per cent service charge on purchase of luxury cars over Rs. 10 lakh and in-cash purchase of goods and services over Rs. 2 lakh.
7. Government to pay EPF contribution of 8.33% of new employees for first 3 years.
8. Long term capital gains for unlisted companies to be reduced from 3 to 2 years
9. Senior citizens to get additional healthcare cover of Rs 30,000 under the new scheme
10. Service Tax to be exempted on general insurance schemes under NIRMAYA Scheme.
11. 100% deduction for profits in housing project for flats up to 30 sq metres in four metros; 60 sq meters in other cities, approved during June 2016 to March 2019 and completed in 3 years. MAT to apply.
12. High Income Individuals to pay enhanced surcharge of 15% in case income more than 1 crore.
13. Limit for 44AD increased from 1 Crore to 2 Crore. (Consequently limit u/s 44AB also increased to 2.00 for business and 50.00 lac for professionals
14. MAT will be applicable for start-ups that qualify for 100 per cent tax exemption
15. A new health protection scheme for health cover upto 1 lakh per family.
16. Dividend taxed at 10% in the hands of individual receiving income in excess of Rs 10 lakhs (in addition to DDT paid by the company).
17. Pollution cess of 1 per cent on small petrol, LPG and CNG cars; 2.5 per cent on diesel cars of certain specifications; 4 per cent on higher-end models.
18. Excise 1 per cent imposed on articles of jewellery, excluding silver
19. Committed to stable taxation regime. No more retrospective amendments.
20. Limited tax compliance window from Jun 1 - Sep 30 for declaring undisclosed income at 45% incl. surcharge and penalties.
21. Window for declaration of domestic black money by paying 30%tax and 15% surcharge.
22. F.Y.2017 Fiscal deficit target at 3.5 per cent.
23. Proposed to withdrawal up to 40 per cent of corpus under National Pension scheme to be tax free. Annuity also to be tax free.
24. 100% deduction for profits of undertakings from housing projects in cities during Jun 2016 - Mar 2019.

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