No tax will be levied on those whose taxable income is less than ₹5 lakh.
Standard deduction increased to ₹50,000 from ₹40,000 for salaried class. This increase of ₹10,000 in standard deduction resulted in tax savings of ₹3,000 for individuals in the 30% tax bracket (excluding surcharge and cess).
Individuals with gross income up to ₹6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities.
TDS threshold for home rent increased from ₹1.8 lakh to 2.4 lakh.
The threshold on TDS on interest from bank or post office deposits has been increased to ₹40,000, from current limit of ₹10,000. This effectively means interest income on bank/post office deposits up to ₹40,000 will not be subject to TDS.
In the Budget, the finance minister proposed exemption from notional rent in respect of two self-occupied house properties. Currently, if a person has two properties which are self-occupied, deemed rent from one of the house properties is taxable. The finance minister also proposed to extend the one-time benefit of capital gains exemption on reinvestment in two house properties. This benefit will apply where capital gains are ₹2 crore or less. Currently, the exemption is applicable only against one house property.