Budget 2016-17: Highlights
Budget 2016: Personal Finance Perspective
- Tax Rebate hiked to Rs 5,000/- U/S 87A which would benefit Individuals whose Taxable Income is less than Rs 5,00,000/- annually.
- Tax Deduction Limit increased to Rs 60,000/- U/S 80GG (House Rent Allowance) from Rs 24,000/- currently.
- Additional Exemption of Rs 50,000/- for Housing Loans upto 35 lakh, provided cost of house is not above 50 lakh.
- Luxury Cars to cost dearer as 1% additional service charge levied on cars over 10 lakhs and cash purchases of goods and services in excess of Rs 2 lakhs will also attract additional service charge of 1%.
- National Pension Scheme withdrawal will enjoy a Tax Exemption of 40% of the total corpus. Currently 100% is taxed.
- Employees’ Provident Fund also comes under the purview of Tax as only 40% of the Subscriber’s total corpus will be exempt from tax. Currently fully exempt from Tax. (Revised on 03rd March,2016, No tax to be levied on EPF.)
- Government will contribute 8.33% towards Employees’ Pension Scheme (EPS) of all unskilled and semi skilled workers joining work in the new financial year for the first 3 years. Thereby individuals may enjoy a higher take home salary.
- Government to provide health insurance of upto Rs. 1 lakh per family; top up of Rs. 30,000 for people above 60 years. 3,000 stores to be opened for generic drugs.