3 I-T CUSHIONS OF RS 50,000 EACH

3 I-T CUSHIONS OF RS 50,000 EACH

FPJ BureauUpdated: Saturday, June 01, 2019, 10:43 AM IST
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New Delhi :  Without tampering with the income-tax rates, Finance Minister Arun Jaitley on Thursday doled out three concessions of Rs 50,000 each to give relief to the tax payers.

He has raised the tax exemption limit by Rs 50,000 — from Rs 2 lakhs to Rs 2.50 lakh — and in case of senior citizens who are 60 plus from Rs 2.50 lakh to Rs 3 lakh.

To further incentivize savings that have slumped from 33.7 per cent of the GDP in 2009-10 to 30.1 per cent in 2012-13, he has increased the investment limit under Section 80C of the Income-Tax Act from Rs 1 lakh to Rs 1.5 lakh.

A further benefit of Rs 50,000 is assured if you have taken a bank loan for housing. Deduction of interest on loan in respect of self-occupied house property from income has been raised from Rs 1.50 lakh to Rs 2 lakh.

Jaitley has come out with many other additional resource mobilisation and  rationalisation measures that put together will mean an estimated revenue loss of Rs 22,200 crore.

The benefits include an investment allowance of 15 per cent to a manufacturing company that invests more than Rs 25 crore in any year in new plant and machinery up to March 31, 2017. The scheme introduced by the UPA government was available only to companies investing more than Rs 100 crore. This investment-linked deduction is also

extended to the slurry pipelines used for transportation of iron ore and the semi-conductor wafer fabrication manufacturing units.

Jaitley also announced his decision to push the Direct Taxes Code Bill of 2010 that had lapsed with the dissolution of the 15th Lok Sabha. It was intended to replace the Income-Tax Act. The previous government had already put the revised code, as recommended by the Parliamentary standing committee, in the public domain. The government shall consider the comments received from the stakeholders on the revised code, review the DTC and take a view in the whole matter, he said.

While giving an incentive of Rs 50,000 in the income-tax law for investments in savings, Jaitley also announced re-launch of the Kisan Vikas Patra to encourage investment by people who may have banked or unbanked savings. It has been a very popular instrument among small savers and hence he was re-introducing it, he said.

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