There were no revisions announced either on the upper limit for Income Tax Exemption or on the different slabs of Income Tax. It has been announced that an additional exemption deduction up to Rs. 1.5 Lakhs can be availed while buying houses priced up to Rs. 45 Lakhs on the interest for the housing loans availed.
The central finance minister Nirmala Seetharaman presented the full budget in the parliament today. With the features announced in the interim budget being in vogue, the individuals up to an annual income of Rs. 5 Lakhs need not pay any income tax.
For the annual income bracket Rs. 2 Crores – Rs. 5 Crores, an additional tax has been increased to 3%. For the annual income group above Rs. 5 Crores, this has been increased to 7%. There have been no revisions in the different slabs structured for Income Tax.
Still, it has been announced that an It deduction of up to Rs. 1.5 Lakhs can be availed while buying houses priced up to Rs. 45 Lakhs on the interest for the housing loans availed. With this announcement, it is gathered that the individuals buying houses in this group, can benefit up to Rs. 7 Lakhs.
In a similar trend, by way of encouraging the use of electric vehicles, a tax exemption of up to Rs. 1.5 Lakhs can be availed on the interests to be paid for the vehicle loans.
Until now, only the organisations with annual revenue of Rs. 250 Crores were under the slab of the lower tax of 25%. Now, organisations with annual revenue of up to Rs. 400 Crores have also been brought under this slab. With this, 99.3% of the organisations have been brought in the slab of the lower tax rate at 25%.
The central finance minister also announced that as an encouragement to cashless transactions, a tax of 2& will be imposed on those who withdraw cash over rs.1 Crore in the year.
Further, the finance minister announced that the revenue from Direct taxes has increased by 78% to Rs. 11.37 Lakhs Crores. The import duty on precious metals including gold, etc., has been increased from 10% to 12.5%.