Budget Highlights

Budget Highlights 

1. Overall deduction benefits to individual taxpayers hiked to Rs 4.5 lakh

 2. Rs 50,000 additional exemption for contributions to NPS

3. Tax ease on serious diseases for seniors raised to Rs 80,000:FM

 4. Exemption on health insurance premium hiked from Rs 15,000 to Rs 25,000. For senior citizens it is hiked to Rs 30,000

 5. Service tax rate hiked to 14% from 12.36% 6. All contributions, except CSR, to Swachh Bharat Abhiyan and Clean Ganga project to enjoy 100% deduction allowed

 7. Transfer pricing threshhold hiked to Rs 20 crore from Rs 5 crore

 8. Wealth tax abolished. To be replaced by surcharge of 2% on income of Rs 1 crore and above. Move to fetch govt Rs 9,000 cr against Rs 1,008 currently mobilised under wealth tax

 9. Corporate tax rate reduced from 30% to 25% over four years; exemptions removed for companies

 10. Proposes to exempt special additional duty on all items

11. Basic custom duty to be reduced for 22 items

12. GAAR deferred by two years would apply prospectively on or after April 1, 2017 13. Total expenditure estimated at crore Rs 17.70 lakh crore: FM

 14. A new benami transaction bill to be introduced to tackle domestic black money; enforcement agencies empowered to attach assets held abroad illegally; Undisclosed income to be taxed at maximum marginal rate, deductions and exemptions for such income won't be allowed; 10 years RI for concealing foreign assets.

 15. Plan spend at Rs 4.65 lakh cr for FY16; non-plan spend at Rs 13.12 lakh cr; Total expenditure 17,77,477 lakh crore