Kushal
1) Rs 40,000 standard deduction introduced: This additional deduction has been proposed in place of existing deductions of Rs. 19,200 for transport allowance an
Kushal
2) Higher cess: Cess on income tax was raised to 4 per cent from 3 per cent for individual taxpayers on the amount of income tax payable.
Kushal
3) Long-term capital gains tax on equity investments: A new 10 per cent tax (cess extra) will be applicable on capital gains exceeding Rs 1,00,000
Kushal
4) Tax on dividend income from equity mutual funds: A tax at the rate of 10 per cent will be levied on dividend distributed by equity-oriented mutual funds.
Kushal
5) More income tax benefits on single premium health insurance policies:
Kushal
For single premium health insurance policies having cover of more than 1 yr. deduction will be allowed on a proportionate basis.
Kushal
6) Income tax benefit on NPS withdrawal: The government has proposed an extension to the benefit of tax-free withdrawal from NPS to non employee subscriber
Kushal
7) Deduction in respect of interest income to senior citizens:
Kushal
a new Section 80TTB is proposed to be inserted to allow a deduction up to Rs 50,000 in respect of interest income from deposits held by senior citizens.
Kushal
However, no deduction under Section 80TTA shall be allowed for senior citizens where 10,000 was allowed before.
Kushal
The government also proposed to increase the investment limit in Pradhan Mantri Vaya Vandana Yojana or PMVVY to Rs. 15 lakh from Rs. 7.5 lakh.
Kushal
8) The threshold for deduction of tax at source on interest income for senior citizens is proposed to be hiked from Rs 10,000 to Rs 50,000.
Kushal
9)The deduction for senior citizens on payment of health insurance premiums has increased from 30k to 50k.
Kushal
The deduction available payment towards medical treatment of specified disease is proposed to be hiked to Rs 1 lakh for very senior citizen (earlier Rs 80,000)