Exemption slab for IT 5 lakhs.and for women 7 lakhs. It rate 2% up to 10 lakhs.12% over and above that. 80C removed. All allowances treated as taxable.No more HRA calculations. Interest on Housing Loan 2 lakhs -deductible from income. Medical Insurance 50,000- deductible from income. All pre-existing diseases covered under mediclaim. Cashless policies. Reimbursement on Medical expenses- tax free. Principal on Housing loan- fully deductible. Except for LIC, EPF,PPF, Post office deposits all else under EET. Gratuity limit 10 lakhs. EL Encashment- no Tax even while in service. Pensioners out of tax slab. Senior Citizens whose income is through interest,dividend etc which is not from superannuation source should be taxed at 1%. STCG and LTCG removed- flat 5% tax. Typically if a person earns 10 lakhs he will pay only 4,000 as tax. He spends on the health of his family, save more, consume better. A women may pay marginally more or will have tax free income.
Let the salaried middle class breathe and become the next consumer boom.
PAN card is a must. Privasise all PSU's. Sell AI and IA to the highest bidder. The name may remain.
