Marginal increase in tax exemption: The personal income-tax exemption limit has been raised for senior citizens by Rs15,000 and for others, by Rs10,000.
Higher deduction under section 80DD: Annual deduction in terms of maintenance, including medical treatment, for a dependant with severe disability (more than 80%) has been raised from Rs75,000 to Rs1 lakh.
Elimination of surcharge: The 10% surcharge on taxes for those with an annual income above Rs10 lakh will no longer exist.
Abolition of fringe benefit tax (FBT): FBT on the value of fringe benefits provided by employers to employees has been abolished. Reimbursements will be taxed as perquisites at the marginal tax rate.
Increase in wealth tax exemption: The exemption limit for wealth tax has been increased from Rs15 lakh to Rs30 lakh.
Automation of tax-filing procedure: Re-engineering of the key business processes around the filing of direct taxes. Expect simplified tax filing in the near future, with the prospect of quicker refunds.
Expanded scope of section 80E: Annual deduction in terms of interest on loans taken for higher education purposes has been expanded from the current limited list of courses to cover all fields of studies, including vocational studies, pursued after completion of schooling.
iTrust Financial Advisors (www.iTrust.in)