There is no change in the tax slabs but individuals earning up to Rs. 5 lakhs per annum would get a full tax rebate. This will provide tax-savings up to Rs. 12,500 for the income bracket under Rs. 5 lakhs. But, this will not impact people with income higher than Rs. 5 lakhs.
The standard deduction for salaried class increased to Rs. 50,000 from Rs. 40,000.
TAX ON INVESTMENT INCOMES
If the income is up to Rs. 6.5 lakhs and you invest in provident funds, specified savings schemes and insurance etc, you will not have to pay any taxes.
Amendment to section 54 of the Income-tax act to make the capital gains up to Rs. 2 crores tax-free from the sale of up to 2 house properties.
TAX ON INTEREST INCOME
Interest income up to Rs. 40,000 from post-offices and banks made tax free.
OTHER TAX RELIEFS
TDS threshold for house-rent increased to Rs. 2.4 lakhs from Rs. 1.8 lakhs.
Rs. 6000 per year assured income support for marginal farmers.
If a farmer gets affected by natural calamities, she will get 2% interest subvention and additional 3% interest subvention on timely repayment.
Also, 2% interest subvention will be available to farmers pursuing animal husbandry, fisheries jobs through Kisaan credit cards.
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