TAX PROPOSAL
1) Relief to small tax payer
# To lessen burden on individuals with income not exceeding Rs 5 lakh, I propose sealing of tax rebate under sec 87A from Rs 2,000 to Rs 5,000
# People who don't have any houses of their own or don't get house compensation from employers will get a rebate of Rs 24,000 per annum.
# Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses
# Anyone with turnover with over Rs 2 crore there will be presumptive income, increased from Rs 1 crore, which will be big relief for MSME category
# Service tax exemption for construction of affordable housing up to 60 sq. mt. under state and central housing schemes
# Service Tax to be exempted on general insurance schemes under NIRMAYA Scheme
# Excise duty on most tobacco products raised by 10-15%
2) Measures to boost growth and employment --
Corporate tax
# Incentives for new manufacturing companies and small enterprise companies
# New manufacturing companies incorporated on or after March 2016, as proposed to be given an option of being taxed at 25% plus cess plus surcharges
# I propose to lower corporate IT rate for next financial year of relatively small enterprises companies with turnovers not exceeding 5 crore in financial year ending March 2015 to 29% per surcharge
# Start-ups -- 100% exemption from tax on profits for three years. MAT will be applicable for this.
3) Incentivise Make in India: Propose to make suitable changes in customs and excise duty rates to reduce cost and increase competitiveness in IT, hardware, defence production, textile.
4) Move towards pension society: Tax treatment should be uniform for defined benefits and defined schemes. Withdrawal of 40% of corpus during retirement will be made tax-free.
# For first time home buyers: Additional deduction of Rs 50,000 on interest for loans up to Rs 35 lakh for property not exceeding Rs 50 lakh.
# Dividend -- Dividend of individuals, HUF over Rs 10 lakh will be taxable
# Rate of security transaction tax in auction to be increased from 0.17% to 0.15%
5) Additional resource for clean economy
# Exemptions on environmentally friendly cars to be continued
# Infrastructure cess on LPG cars, cars of higher engine capacity, SUVs
# 1% infra cess on small LPG cars
# Clean energy cess for coal at Rs 400/tonne
6) Reducing litigation: Limited period compliance window for taxpayers to declare undisclosed income. Declarations to have immunity from prosecution
# Limited tax compliance window from Jun 1 - Sep 30 for declaring undisclosed income at 45% including surcharge and penalties
# Our govt is completely committed to removing black money from the economy,
7) Simplification of taxation:
# To cut multi taxes, propose to abolish 13 cesses levied by various Ministries in which revenue collection is less than Rs 50 crores per year
# I accept suggestion from Rahul Gandhi on providing relief (exemption of duty on braille paper) to differently-abled people
8) Create accountability:
Propose new dispute resolution scheme