Union Budget 2016-17 Live Updates: No change in Income Tax slabs, rent relief increased to Rs 60,000

New Delhi: While making no change in personal Income Tax slabs in the Union Budget 2016-17, Finance Minister Arun Jaitley on Monday announced deduction for additional interests of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned in 2016-17 for first time home buyers, where house costs does not exceed Rs 50 lakh. 

Jaitley also proposed to increase the limit of deduction of rent paid from Rs 24,000 per annum to Rs 60,000 spelling respite to those who don’t own any house and live in rented accommodation.

For those earning less than Rs 5 lakh per annum,  FM announced to raise the ceiling of tax rebate from Rs 2000 to Rs 5000 giving an additional relief of Rs 3000 in their tax liability.

Stay tuned as we bring you live updates from the Budget.

29 February 2016

13:00 IST

-No change in Income Tax slabs

-First time home buyer – Rs 50,000 deduction for upto Rs 35 lakh loan provided house cost not more than Rs 50 lakh  

-Reduction of Rs 60,000 per annum for those who don’t own house and pay rent

-Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts

-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

-FM announces 9 objectives for tax reforms

-Tax rebate for those earning less than 5 lahk per annum

-Under 5 lakh income – rebate increased from 2000 to 5000

-Corporate Tax – New manufacturing companies registered on/post March 01, 2016 – option of tax 25% surcharge + cess

-Lower Corporate tax for small companies at 29% surcharge + cess

-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

-Presumptive tax extended for professional earning up to Rs 50 lakh

12:46 IST

-New grading system of imposing penalties - on the basis of under reporting or concealment of income

-Excise duty on Tobacco products increased by 10-15%

-Net impact of taxation proposals is an increase in Govt revenue by Rs 19,610 cr

-Scope of e-assessment to be expanded to 7 mega cities

-Income tax department will expand e-sahyog to assist small taxpayers

-Income tax dept. will expand e-sahyog to assist small taxpayers:

-Start-ups to get 100% tax exemption for 3 years except MAT which will apply from April 2016-2019