Finance Minister Arun Jaitley did not change income tax pieces in his third Budget, yet he tweaked a few deductions and announced multiple new cesses, which will affect tax liability for the basic man.
Here is a finished rundown of new tax measures announced in Budget 2016:
1) Deduction limit under Section 87A of the Income Tax Act has been raised from Rs. 2,000 to Rs. 5,000 each annum. This will help more than 2 crore taxpayers spare more.
2) Taxpayers who live in leased houses and don't get house rent stipend (HRA) can deduct Rs. 60,000 every annum from their income from the current Rs. 24,000.
3) An extra deduction of Rs. 50,000 on interest paid by first-time home purchasers on home advances of up to Rs. 35 lakh, gave the house estimation doesn't surpass Rs. 50 lakh, has been announced.
4) Super-rich, or those with an income of over Rs. 1 crore, will need to pay more taxes as extra charge has been raised from 12 per cent to 15 per cent.
5) Individuals who get dividends in overabundance of Rs. 10 lakh each annum will now need to pay 10 per cent tax on gross amount of profit.
6) Cars estimated Rs. 10 lakh or more will attract 1 per cent tax. Purchase of goods and services in real money surpassing Rs. 2 lakh will likewise attract 1 per cent tax. A foundation cess of 1 per cent on little petrol, LPG and CNG cars, 2.5 per cent on diesel cars of certain capacity, and 4 per cent on SUVs will make purchasing all cars costlier.
7) Eating out in eateries, purchasing property and insurance, and making cellular phone calls will turn out to be more expensive from June 1, 2016 due to a "Krishi Kalyan" cess of 0.5 per cent, which will be collected on all services.
8) Cigarette costs will go from next budgetary year as excise duty on tobacco products (other than beedi) has been hiked from 10 per cent to 15 per cent.
9) Branded retail garments will get to be costlier as Budget 2016 has proposed a 6 per cent excise on branded retail garments estimated more than Rs. 1,000. Imitation adornments is likewise set to cost more as essential traditions duty has been expanded from 10 per cent to 15 per cent.
10) Single-premium insurance premiums will get cheaper as service tax on policy premiums has been cut from 3.5 per cent to 1.4 per cent.