- For salaried employees, a standard deduction of Rs 40,000 to be allowed in lieu of transport allowance and medical expenses.
Thus, benefits of Transport Allowance to the extent of Rs.19,200/- & Medical Allowance to the extent of Rs.15,000/- (aggregating to Rs.34,200/-) are being withdrawn. Net benefit to the salaried taxpayers Rs.5,800/-
- Corporate tax reduced to 25% for firms with turnover of Rs 250 Crores in FY 2016-17.
This action is said to benefit to the extent of 99% of the Companies existent in India.
- Interest income exemption on deposits with banks and post offices for senior citizens increased from Rs 10,000 to Rs 50,000.
- Senior citizens will be able to claim benefit of deduction up to Rs 50,000 annually on health insurance premium and/or general medical expenditure incurred.
- E-assessment of Income Tax Act to eliminate person-to-person contact.
- Govt makes PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more.
- Provisions of Sec. 43CA, 50 C & 56 (2) (x) are being ameneded to allow 5% of Sale Consideration in variation w.r.t. Stamp Duty Value of the property, on account of location, disadvantage, etc.
This will give relief to the assessees dealing in real estate, as upto 5% downward sale consideration would be accepted without attracting the provisions of Sec 43CA, 50C & 56 (2) (x) by the Income Tax Department, subject to their satisfaction.
- No change in personal income tax slabs and rates.
Check Applicable Slab Rates for FY 2017-18 & FY 2018-19
- Surcharge of 10% on income above Rs 50 lakh but less than Rs 1 cr, 15% on income above Rs 1 cr to continue.