Indian Budget Income Tax Details for 2016-17. Budget 2016-2017 Speech of Arun Jaitley Minister of Finance February 29, 2016. Important Glimpses on Income Tax and other issues. Mr Arun Jaitley has said in his Budget Speech regarding Income Tax that "The Government acknowledges the role of taxpayers in nation building. Each rupee of tax contributes towards the Government’s efforts to provide better infrastructure, rural revival and social well-being. Taxation is a major tool available to Government for removing poverty and inequality from the society. The posterity will not forgive us if we do not use this opportunity in this perspective"
Indian Budget Income Tax Details for 2016-17The thrust of my tax proposals this year falls in nine categories:-
(1) Relief to small tax payers.
(2) Measures to boost growth and employment generation.
(3) Incentivizing domestic value addition to help Make in India.
(4) Measures for moving towards a pensioned society.
(5) Measures for promoting affordable housing.
(6) Additional resource mobilization for agriculture, rural economy and clean environment.
(7) Reducing litigation and providing certainty in taxation
(8) Simplification and rationalization of taxation
(9) Use of Technology for creating accountability
Relief to small tax payers
- In order to lessen tax burden on individuals with income not exceeding Rs5 lakhs, I propose to raise the ceiling of tax rebate under section 87A from Rs 2,000 to Rs 5,000. There are 2 crore tax payers in this category who will get a relief of Rs 3,000 in their tax liability.
- The people who do not have any house of their own and also do not get any house rent allowance from any employer today get a deduction of Rs. 24,000 per annum from their income to compensate them for the rent they pay. I propose to increase the limit of deduction in respect of rent paid under section 80GG from Rs 24,000 per annum to Rs 60,000 per annum, which should provide relief to those who live in rented houses.
- For the ‘first – home buyers’, I propose to give deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned during the next financial year, provided the value of the house does not exceed Rs 50 lakh.
- Deduction under Section 80JJAA of the Income Tax Act will be available to all assesses who are subject to statutory audit under the Act.
- Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.
- Exempt from service tax the Annuity services provided by the National Pension System (NPS) and Services provided by EPFO to employees.