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2017-18

2017-18

  • 1. Reduced the existing rate of taxation for individual assesses between incomes of Rs 2.5 lakhs to Rs 5 lakhs to 5% from the present rate of 10%.

  • 2. Surcharge of 15% for those whose annual income is above Rs 1 crore

  • 3. A single one-page form for filing IT returns for taxable income up to Rs 5 lakh

  • 4. Capital Gains Tax holding period reduced from 3 years to 2 years for real estate

  • 5. In order to allow the people to claim the refund expeditiously, the time period for revising a tax return is being reduced to 12 months from completion of financial year, at par with the time period for filing of return.

  • 6. Exempted capital gains arising out of transfer of a rupee denominated bond by a non-resident to a non-resident.

2016-17

2016-17

  • 1. Raised the ceiling of tax rebate under section 87A from Rs 2000 to Rs 5000 to lessen tax burden on individuals with income upto Rs 5 lakhs.

  • 2. Increased the limit of deduction of rent paid under section 80GG from Rs 24000 per annum to `60000, to provide relief to those who live in rented houses.

  • 3. Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.

  • 4. In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1.4.2016.

  • 5. Limit for contribution of employer in recognized provident and superannuation fund of Rs 1.5 lakh per annum for taking tax benefit

  • 6. Deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned in 2016-17 for first time home buyers, where house cost does not exceed Rs 50 lakh.

  • 7. Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs 10 lakh per annum.

  • 8. Surcharge to be raised from 12% to 15% on persons, other than companies, firms and cooperative societies having income above Rs 1 crore.

2015-16

2015-16

  • 1. Increase in the limit of deduction in respect of health insurance premium from Rs 15,000 to Rs 25,000. For senior citizens the limit will stand increased to Rs 30,000 from the existing Rs 20,000.

  • 2. For very senior citizens of the age of 80 years or more, who are not covered by health insurance, deduction of Rs 30,000 towards expenditure incurred on their treatment will be allowed.

  • 3. The deduction limit of Rs 60,000 towards expenditure on account of specified diseases of serious nature to be enhanced to Rs 80,000 in case of very senior citizens.

  • 4. Additional deduction of Rs 25,000 will be allowed for differently-abled persons under Section 80DD and Section 80U of the Income-tax Act.

  • 5. The limit on deduction on account of contribution to a Pension Fund and the New Pension Scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.

  • 6. All payments to the beneficiaries including interest payment on deposit under Sukanya Samriddhi Scheme will also be fully tax-exempt.

  • 7. Transport allowance exemption is being increased from Rs 800 to Rs 1,600 per month.

  • 8. For the benefit of senior citizens, service tax exemption will be provided on Varishta Bima Yojana.

  • 9. Additional deduction of Rs 50,000 for contribution towards NPs over and above the limit of Rs 1.5 lakh under Section 80 C

2014-15

2014-15

  • 1. New Tax slab (Men and Women)

    • Income up to Rs 2.5 lakh - Nil
    • Income above Rs 2.5 lakh and up to Rs 5 lakh - 10 per cent
    • Income above Rs 5 lakh and up to Rs 10 lakh - 20 per cent
    • Income above Rs 10 lakh - 30 per cent
  • 2. New Tax slab (Senior Citizens)

    • Income up to Rs 3 lakh - Nil
    • Income above Rs 3 lakh and up to Rs 5 lakh - 10 per cent
    • Income above Rs 5 lakh and up to Rs 10 lakh - 20 per cent
    • Income above Rs 10 lakh - 30 per cent
  • 3. New Tax slab (Very Senior Citizens)

    • Income above Rs 5 lakh and up to Rs 10 lakh - 20 per cent
    • Income above Rs 10 lakh - 30 per cent
    • The investment limit under section 80C of the Income-tax Act was raised from Rs 1 lakh to Rs 1.5 lakh.
    • The deduction limit on account of interest on loan in respect of self-occupied house property increased from Rs 1.5 lakh to Rs 2 lakh.
    • Kissan Vikas Patra (KVP) was re-launched after it was discontinued in 2011.
    • Launch of a special small savings instrument for girl child and a National Savings Certificate with insurance cover announced
2013-14

2013-14

  • 1. Deduction under Rajiv Gandhi Equity Savings Scheme made available for three years against the existing period of one year. The income limit was also raised from Rs 10 lakh to Rs 12 lakh

  • 2. A person taking a loan for his first home from a bank or a housing finance corporation up to Rs 25,00,000 during 1.4.2013 to 31.3.2014 was allowed to avail an additional deduction of interest of up to Rs 100,000.

  • 3. The launch of Inflation Indexed Bonds or Inflation Indexed National Security Certificates was announced.

2012-13

2012-13

  • 1. New Tax slab (Men & Women)

    • Income up to Rs 2 lakh - Nil
    • Income above Rs 2 lakh and up to Rs 5 lakh - 10 per cent
    • Income above Rs 5 lakh and up to Rs 10 lakh - 20 per cent
    • Income above Rs 10 lakh - 30 per cent
  • 2. New Tax slab (Senior Citizens)

    • Income up to Rs 2.5 lakh - Nil
    • Income above Rs 2 lakh and up to Rs 5 lakh - 10 per cent
    • Income above Rs 5 lakh and up to Rs 10 lakh - 20 per cent
    • Income above Rs 10 lakh - 30 per cent
  • 3. New Tax slab (Very Senior Citizens)

    • Income above Rs 5 lakh and up to Rs 10 lakh - 20 per cent
    • Income above Rs 10 lakh - 30 per cent
    • Interest income up to Rs 10,000 for savings bank accounts exempted from income tax.
    • Expenses up to Rs 5,000 on preventive health check-ups made eligible for deduction within the existing limit as mentioned under Section 80 D (deduction against health insurance premium)
    • A new scheme called Rajiv Gandhi Equity Savings Scheme was launched under which new equity investors could claim deduction up to 50% of the invested amount. Only first time equity investors with annual income is below Rs 10 lakh were eligible under the scheme.
2011-12

2011-12

  • 1. New Tax slabs (Men Up to 60 years)

    • Income up to Rs 1.8 lakh - Nil
    • Income above Rs 1.8 lakh and up to Rs 5 lakh - 10 per cent
    • Income above Rs 5 lakh and up to Rs.8 lakh - 20 per cent
    • Income above Rs 8 lakh - 30 per cent
  • 2. New Tax slabs (Women Up to 60 years)

    • Income up to Rs 1.9 lakh - Nil
    • Income above Rs 1.9 lakh and up to Rs 5 lakh 10 per cent
    • Income above Rs 5 lakh and up to Rs 8 lakh 20 per cent
    • Income above Rs 8 lakh 30 per cent
  • 3. New Tax slabs (Senior Citizens) Note: The qualifying age reduced from 65 years to 60 years

    • Income up to Rs 2.5 lakh - Nil
    • Income above Rs 2.5 lakh and up to Rs 5 lakh - 10 per cent
    • Income above Rs 5 lakh and up to Rs.8 lakh - 20 per cent
    • Income above Rs 8 lakh - 30 per cent
    • A new category of very senior citizens, 80 years and above, was made eligible for a higher exemption limit of Rs 5,00,000.
    • Interest subvention of 1% extended to housing loans up to Rs 15 lakh, where the cost of the house did not exceed Rs 25 lakh from the existing limit of Rs 10 lakh and Rs 20 lakh, respectively.
2010-11

2010-11

  • 1. New Tax slabs (Men Up to 65 years)

    • Income up to Rs 1.6 lakh - Nil
    • Income above Rs 1.6 lakh and up to Rs.5 lakh - 10 per cent
    • Income above Rs 5 lakh and up to Rs.8 lakh - 20 per cent
    • Income above Rs.8 lakh - 30 per cent
  • 2. New Tax slabs (Women Up to 65 years)

    • Income up to Rs 1.9 lakh - Nil
    • Income above Rs.1.9 lakh and up to Rs 5 lakh - 10 per cent
    • Income above Rs 5 lakh and up to Rs.8 lakh - 20 per cent
    • Income above Rs 8 lakh - 30 per cent
  • 3. New Tax slabs (Senior Citizens)

    • Income up to Rs 2.4 lakh - Nil
    • Income above Rs 2.4 lakh and up to Rs 5 lakh - 10 per cent
    • Income above Rs 5 lakh and up to Rs 8 lakh - 20 per cent
    • Income above Rs 8 lakh - 30 per cent
    • Allows additional deduction of Rs 20,000 (over and above the Section 80 C limit of Rs 1 lakh) for investment in long-term infrastructure bonds.
    • Contributions to the Central Government Health Scheme made eligible for deduction under Section 80 D.
2009-10

2009-10

  • 1. New tax slab (Male up to 65 years of age)

    • Up to Rs 160,000 - NIL
    • Rs.160,001 to Rs.300,000 - 10 per cent
    • Rs.300,001 to Rs.500,000 - 20 per cent
    • Rs.500,001 and above - 30 per cent
  • 2. Female (Up to 65 years)

    • Up to Rs 190,000 NIL
    • Rs.190,001 to Rs.300,000 10 per cent
    • Rs.300,001 to Rs.500,000 20 per cent
    • Rs.500,001 and above 30 per cent
  • 3. For Senior Citizens

    • Up to Rs 240,000 - NIL
    • Rs 240,001 to Rs 300,000 - 10 per cent
    • Rs 300,001 to Rs 500,000 - 20 per cent
    • Rs 500,001 and above - 30 per cent
    • The deduction limit under section 80-DD in respect of maintenance, including medical treatment, of a dependent who is a person with severe disability to Rs 1 lakh from the present limit of Rs 75,000.
    • The surcharge of 10% on personal income tax removed.
    • Exempts the income of the NPS Trust from income tax and any dividend paid to this Trust from Dividend Distribution Tax. All purchase and sale of equity shares and derivatives by the NPS Trust was also exempted from the Securities Transaction Tax.
2008-09

2008-09

  • 1. New Tax slab (Male up to 65 years of age)

    • Up to Rs 150,000 - NIL
    • Rs 150,001 to Rs 300,000 - 10 per cent
    • Rs.300,001 to Rs.500,000 - 20 per cent
    • Rs.500,001 and above - 30 per cent
  • 2. Female (Up to 65 years)

    • Up to Rs 180,000 - NIL
    • Rs 180,001 to Rs 300,000 - 10 per cent
    • Rs 300,001 to Rs 500,000 - 20 per cent
    • Rs 500,001 and above - 30 per cent
  • 3. For Senior Citizens

    • Up to Rs 225,000 - NIL
    • Rs 225,001 to Rs 300,000 - 10 per cent
    • Rs 300,001 to Rs 500,000 - 20 per cent
    • Rs 500,001 and above - 30 per cent
    • Senior Citizens Savings Scheme 2004 and the Post Office Time Deposits added to the basket of saving instruments under Section 80C of the Income Tax Act.
    • An additional deduction of Rs 15,000 under Section 80D allowed to an individual who pays medical insurance premium for his/her parent or parents Income earned from Reverse Mortgage Scheme was made tax-free
    • Short-term capital gains tax rate increased from 10% to 15%.
    • Banking Cash Transaction Tax (BCTT) withdrawn
2007-08

2007-08

  • 1. Reverse mortgage scheme was introduced. Now, a senior citizen who is the owner of a house can avail of a monthly stream of income against the mortgage of his/her house, while remaining the owner and occupying the house throughout his/her lifetime, without repayment or servicing of the loan.

  • 2. PAN made the sole identification number for all participants in the securities market.

  • 3. New tax slabs (Male)

    • Up to Rs 1.1 lakh - nil
    • Rs 1.1 lakh to Rs 1.5 lakh - 10 per cent
    • Rs 1.5 lakh to Rs 2.5 lakh - 20 per cent
    • Above Rs 2.5 lakh - 30 per cent
  • 4. New tax slabs (Female)

    • Up to Rs 1.45 lakh - nil
    • Rs 1.45 lakh to Rs 1.5 lakh - 10 per cent
    • Rs.1.5 lakh to Rs 2.5 lakh - 20 per cent
    • Above Rs 2.5 lakh - 30 per cent
  • 5. New tax slabs (Senior Citizens)

    • Up to Rs 1.95 lakh - nil
    • Rs 1.95 lakh to Rs 2.5 lakh - 20 per cent
    • Above Rs 2.5 lakh - 30 per cent
    • Deduction limit for medical insurance premium under section 80D increased to a maximum of Rs 15,000 and, in the case of a senior citizen, a maximum of Rs 20,000.
    • Rate of dividend distribution tax increased from 12.5% to 15% on dividends distributed by companies.
    • Dividend distribution tax on money market mutual funds and liquid mutual funds raised to 25%
    • Employees' Stock Option Plans (ESOPs) brought under FBT.
    • Education cess raised from 2% to 3%.
2006-07

2006-07

  • 1. Bank fixed deposits for a term of not less than five years were made eligible for tax deduction under Section 80C of the Income Tax Act. The existing limit of Rs 10,000 for pension funds under Section 80 CCC was removed and brought under the overall limit of Rs 100,000.

  • 2. New tax slabs (Male up to 65 years)

    • Up to Rs 1 lakh - nil
    • Rs 1 lakh to Rs 1.5 lakh - 10 per cent
    • Rs 1.5 lakh to Rs 2.5 lakh - 20 per cent
    • Above Rs 2.5 lakh - 30 per cent
  • 3. New tax slabs (Female up to 65 years)

    • Up to Rs 1.35 lakh - nil
    • Rs 1.35 lakh to Rs 1.5 lakh - 10 per cent
    • Rs 1.5 lakh to Rs 2.5 lakh - 20 per cent
    • Above Rs 2.5 lakh - 30 per cent
  • 4. New tax slabs (Senior Citizens)

    • Up to Rs 1.85 lakh - nil
    • Rs 1.85 lakh to Rs.2.5 lakh - 20 per cent
    • Above Rs.2.5 lakh - 30 per cent
2005-06

2005-06

  • 1. Proposal for introduction of Gold Exchange Traded Funds (ETFs) by mutual funds announced.

  • 2. New tax slabs (Male)

    • Up to Rs 1 lakh - Nil
    • Rs 1 lakh to Rs 1.5 lakh - 10 per cent
    • Rs 1.5 lakh to Rs 2.5 lakh - 20 per cent
    • Above Rs 2.5 lakh - 30 per cent
  • 3. New tax slabs (Female)

    • Up to Rs 1.25 lakh - nil
    • Rs 1 lakh to Rs 1.5 lakh - 10 per cent
    • Rs 1.5 lakh to Rs 2.5 lakh - 20 per cent
    • Above Rs 2.5 lakh - 30 per cent
  • 4. New tax slabs (Senior Citizens)

    • Up to Rs 1.50 lakh - Nil
    • Rs 1 lakh to Rs 1.5 lakh - 10 per cent
    • Rs 1.5 lakh to Rs 2.5 lakh - 20 per cent
    • Above Rs 2.5 lakh - 30 per cent
  • 5. Standard deduction removed, and a new deduction limit of Rs 1 lakh under Section 80 C was introduced. The rebate under Section 88 is being eliminated and Section 80L is being omitted to reflect the new regime.

  • 6. Exemption on interest earned on accounts maintained by Non Resident Indians re-introduced.

  • 7. Fringe Benefits Tax was introduced to bring perquisites enjoyed by employees under the tax net.

2004-05

2004-05

  • 1. Banks were allowed to offer education loans up to Rs 7.5 lakh (up from Rs 4 lakh) without the requirement of collateral.

  • 2. Senior Citizens Savings Scheme was launched replacing the Varishta Pension Bima Yojana. The new scheme also offered an interest rate of 9%.

  • 3. Basic exemption limit for income tax was fixed at Rs 1,00,000.

  • 4. New Pension System (NPS) was brought under EET in which the contributions and accrual were exempt from tax; and only the terminal benefits were taxed.

  • 5. Interest earned from a Non-Resident (External) Account and interest paid by banks to a Non-Resident or to a Not-Ordinarily Resident on deposits in foreign currency were brought under the tax net.

  • 6. Gifts from unrelated persons, above the threshold limit of Rs 25,000, were to be treated as income and accordingly brought under the tax net. However, gifts received from blood relations, lineal ascendants and lineal descendants, and gifts received on certain occasion like marriage continued to be exempt.

  • 7. Long-term capital gains from any securities transactions abolished altogether. Instead securities transaction tax (STT) at 0.15% was levied on transactions in securities on the stock exchanges.

  • 8. Distribution tax on dividend at 12.5% was levied on debt-oriented mutual funds for individuals and HUF. For corporate unit holders, the rate was fixed at 20%.

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