Union Budget Relief for middle class Individual;
No changes have been made to existing income tax slabs.
Benefit to Individual;
Deduction for rent paid will be raised to Rs 60,000 u/s 80gg to benefit those living in rented houses ( subject to condition that, the Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act)
Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
Service tax exempted for housing construction of houses less than 60 sq. mt.
New health protection scheme for health cover upto 1 lakh per family.
For tax payers earning below Rs 5 lakh, ceiling on tax rebate has been increased toRs5,000.
Extra pay by Individual;
15 per cent surcharge on income above Rs. 1 crore.
Excise duty raised from 10 to 15 per cent on tobacco products other than beedis.
1 per cent service charge on purchase of luxury cars over Rs. 10 lakh and in-cash purchase of goods and services over Rs. 2 lakh and 4% high capacity tax for SUVs.
Dividend in excess of Rs. 10 lakh per annum to be taxed at additional 10 per cent.