Finance Minister Niramala Sitharaman introduced a new optional personal income tax system and
announced multi-billion dollar farm, infra and healthcare package to revive growth in the country.
Emphasising on capacity building and empowerment of marginalised sections of the society while
protecting the wealth creators, Sitharaman said this Budget will boost income and purchasing power
of the people. Finance minister also raised the bank depositors insurance coverage to Rs 5 lakh from
Rs 1 1 lakh.
Here are all the key highlights from Nirmala Sitharaman’s Budget speech:
New optional tax slabs: New income tax slabs will be available for those who forgo exemptions.
Taxable income slabs
Up to Rs 5 lakh
Rs 5 Lakh to Rs 7.5 Lakh
Rs 7.5 lakh to Rs 10 lakh
Rs 10 lakh to Rs 12.5 lakh
Rs 12.5 lakh to Rs 15 lakh
Rs 15 lakh and above
To simplify the tax system and lower tax rates, around 70 of more than 100 income tax deductions
and exemptions have been removed.
Dividend Distribution Tax (DDT) abolished; Companies will not be required to pay DDT; dividend
to be taxed only at the hands of recipients, at applicable rates.
Cash reward system envisaged to incentivise customers to seek invoice.
15% concessional tax rate for new power generation companies.
Tax on cooperative societies reduced to 22% without exemptions.
100% tax concession to sovereign wealth funds on investment in infrastructure projects.
Tax on Cooperative societies to be reduced to 22 per cent plus surcharge and cess ,as against 30
per cent at present.
To end tax harassment, new taxpayer charter to be instituted. Tax harassment will not be tolerated,