Finance Minister Nirmala Sitharaman on Friday said the government is proposing additional tax deduction of Rs 1.50 lakh on interest paid on home loans to March 2020. Presenting the first Budget of the Modi government in its second term, Sitharaman said the government will also provide income tax deduction of Rs 1.5 lakh on interest paid on loans taken for purchase of electric vehicles.
The finance minister further proposed investment-linked tax benefit on manufacturing of products like lithium batteries and solar chargers. Sitharaman also proposed that 25 per cent corporate tax will apply on companies with up to Rs 400 crore turnover; covering 99.3 pc of corporate India.
Here are some major announcements made by Nirmala Sitharaman for taxes:
* Additional Rs 1.5 lakh income tax deduction on interest paid on home loans
* Tax deduction of Rs 1.5 lakh on e-vehicle loan interest
* TDS of 2 per cent on cash withdrawal of more than Rs 1 cr from a bank account
* Launching automated, faceless assessment of tax
* To make pre-filled tax return forms available
* To make Aadhaar, PAN interchangeable to file tax returns
* Tax proposals aiming to stimulate growth, housing
* Seeing double-digit growth in direct tax revenue annually
* Nirmala Sitharaman also proposed to raise the annual turnover limit from Rs 250 crore to Rs 400 crore for availing a lower corporate tax rate of 25 per cent.
* Exempt customs duty on imported defence equipment
* Legacy dispute resolution plan to settle tax cases
* Urge traders to avail legacy tax dispute resolution scheme
* Amended Customs Act to have provisions for enhanced penalty
* To impose basic excise duty on tobacco products
* To raise road, infra cess on petrol, diesel by 1 rupee/ltr
* To up special additional excise on diesel by 1 rupee/ltr
* To up special additional excise on petrol by 1 rupee/ltr
* Proposing certain amendments to Customs Act
* Raising customs duty on precious metals to 12.5%
* Raising customs duty on gold
* Customs duty being exempted on some parts of e-vehicles
* 5% customs duty being imposed on imported books
* To implement fully-automated GST refund module
* GST led to lower rates on almost all commodities
* RBI, banks to absorb merchant discount rate at small shops
* No merchant discount rate on e-transaction at small shops
* People with annual income under Rs 5 lakh exempt from Income Tax
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