New Delhi: While making no change in personal Income Tax slabs in the Union Budget 2016-17, Finance Minister Arun Jaitley on Monday announced additional tax relief of Rs 50,000 for first time home buyers for up to Rs 35 lakh loan provided house cost does not exceed Rs 50 lakh. 

Jaitley also announced to hike HRA deduction limit from Rs 24,000 to Rs 60,000 per annum for rent payers.

Union Budget 2016-17 Live Updates: No change in Income Tax slabs, rent relief increased to Rs 60,000

Latest Updates 

-No change in Income Tax slabs

-First time home buyer – Rs 50,000 deduction for upto Rs 35 lakh loan provided house cost not more than Rs 50 lakh  

-Reduction of Rs 60,000 per annum for those who don’t own house and pay rent

-Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts

-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

-FM announces 9 objectives for tax reforms

-Tax rebate for those earning less than 5 lahk per annum

-Under 5 lakh income – rebate increased from 2000 to 5000

-Corporate Tax – New manufacturing companies registered on/post March 01, 2016 – option of tax 25% surcharge + cess

-Lower Corporate tax for small companies at 29% surcharge + cess

-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

-Presumptive tax extended for professional earning up to Rs 50 lakh

-New grading system of imposing penalties - on the basis of under reporting or concealment of income

-Excise duty on Tobacco products increased by 10-15%

-Net impact of taxation proposals is an increase in Govt revenue by Rs 19,610 cr

-Scope of e-assessment to be expanded to 7 mega cities

-Income tax department will expand e-sahyog to assist small taxpayers

-Income tax dept. will expand e-sahyog to assist small taxpayers:

-Start-ups to get 100% tax exemption for 3 years except MAT which will apply from April 2016-2019

-Levy of heavy penalty for non payment of tax has led to high litigation. Proposal to modify scheme for penalties

-Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts

-Tax arrears can be paid in lieu of interest liabilities  in retrospective taxation cases

-Monetary limit for cases to be decided by 1-member bench up from 15 lakh to 50 lakhs

-Incentives for new manufacturing companies and smaller enterprise companies

-11 new benches of tax tribunals to be established to reduce pendency

-To reduce multiplicity of taxes and cascading - 13 taxes with collection less than Rs 50 Cr a year abolished

-Companies Act to amended for ease of doing business; to enable registration of companies in a day

-Service tax exempted for housing construction of houses less than 60 sq metres

-15% surcharge on income tax for those with incomes exceeding 1 crore pa

-I propose to lower corporate IT rate for next financial yr of relatively small enterprises companies with turnovers nt exceeding 5cr

-Krishi Kalyan Cess of 0.5% on all taxable services

-Tax evasion will be countered strongly:

-Service tax on single premium annuity to be reduced to 1.5 percent from 3.5 percent.

-10% dividend on earnings over earnings over 10 lakhs

-Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit.

-Limited tax compliance window from Jun 1 - Sep 30 2016 for declaring undisclosed income at 45% including surcharge and penalties. There shall be no scrutiny or prosecution in this regard

-Clean energy cess increased from RS 200 per tonnne to 400 per tonnne on coal, lignite and peat

-Move towards a low tax regime with non litigious approach

-Committed to provide a stable and predictable taxation regime