With an aim to stimulate growth, incentivise affordable housing, simplify tax administration and bring greater transparency, Finance Minister Nirmala Sithraman today presented her maiden budget.
If you are a taxpayer, here's what NDA 2.0's first budget means for you:
- No income tax up to Rs 5 lakh income. No change in the income tax slabs proposed.
- Lump sum withdrawal of 60 per cent from NPS has been proposed to be tax free at the time of maturity
- Additional tax deduction of Rs 1.5 lakh on interest paid on loans borrowed up to 31 Mar, 2020 for purchase of house up to Rs 45 lakh.
- Interchangeable PAN and Aadhaar for filing ITR, if you do not have PAN
- Faceless income tax assessment in electronic mode involving no human interface to be launched this year in a phased manner, to reduce taxpayer harassment.
- Surcharge hike for individuals having income between 2-5 crore and 7 crore proposed at 3 per cent and 7 per cent respectively.
- Additional income tax deduction of Rs 1.5 lakh on the interest paid on electric vehicle loans.
- You will now have to shell out more for fuel. Special additional excise duty of Rs 2/Litre on petrol, diesel for road and infrastructure proposed.
- FM has proposed to increase the import duty on gold and precious metals to 12.5 per cent from 10 per cent.
- To discourage business payments in cash, Tax Deduction at Source of 2% to be levied on cash withdrawal exceeding 1 crore rupees in a year from a bank account.