The Finance Minister Arun Jaitley unveiled three new measures to provide Income tax relief for the small taxpayers.
- Mr Jaitley proposed, Under Section 87A of Income Tax Act, The deduction limit of Income tax increased from Rs. 2000 to Rs. 5000 per annum. Prior, It reduces only Rs. 2000 of the total tax payable. This section is applicable for all those taxpayers with income less than Rs 5 lakh and will relief more than 2 crore small taxpayers.
- Finance Minister also announced a deduction of additional interest of Rs 50,000 per annum for the first time home buyers on the sanctioned loan amount up to Rs 35 lakh in 2016-2017, with the condition the house cost valuation does not exceed Rs. 50 lakh.
- The proposed third measure is beneficial for those who don’t own any house and living in a rented accommodation will now get the benefit of increased deduction limit of rent paid from Rs 24000 to Rs 60,000 per annum.
