quick snap on Indian Budget- Direct Tax angle

1.    Personal income tax raised from 2 lakh to Rs 2.5 lakh

2.    Income tax exemption limit for senior citizens raised from Rs 2.5 lakh to Rs 3 lakh.

 3.    No changes in surcharge rates for direct tax

4.    80C exemption limit increased from Rs 1 lakh to Rs 1.5 lakh 5.    Exemption on payment of income tax on interest paid on loans for self occupied houses raised to Rs 2 lakh from Rs 1.5 lakh. 

5.    Exemption on payment of income tax on interest paid on loans for self occupied houses raised to Rs 2 lakh from Rs 1.5 lakh.

6.    Education cess to continue to remain at 3%

7.    10-year tax holiday to be extended to companies that start power generation by March 31, 2017.

8.    Govt to review revised Direct Taxes Code taking into account comments from stakeholders. Direct tax proposals to involve sacrifice of Rs 22,200 crore.

9.    Propose To Retain 15% Tax Rate On International Dividend Income

10.  Provide investment allowance at 15% for 3 yrs to manufacturing company which invest more than Rs 25 cr in      plant and machinery

11.    Govt announces pruning of negative and exemption list of service tax to widen tax base.

12.    Govt to earn Rs 7,525 crore more from changes in indirect taxes.  

Income From Portfolio Investment To Be Capital Gains