December 31, 2025 04:47 pm (IST)
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Union Budget 2016: Announcement of relief for small tax payers and others
New Delhi, Feb 29 (IBNS) Union Finance Minister Arun Jaitley on Monday presented the Union Budget 2016 where he said he would like to give relief to small tax payers and proposed to raise the ceiling of tax rebate under Section 87A of IT Act to Rs 5,000 from Rs 2,000 for individuals with income less than Rs 5 lakhs.
The minister said that taxation is a major tool available to the government for removing poverty and inequality and it has to be cautiously exercised.
He said that more than two crore tax payers would get a relief of Rs. 3,000.
The limit of deduction of house rent paid under section 80GG has also been raised to Rs 60,000 from the existing Rs 24,000 per annum to give relief to employees who live in rented houses.
Under the presumptive taxation scheme under Section 44AD of the Income tax Act, the limit of turnover or gross receipts has been raised to two crore rupees from the existing one crore rupees to benefit about 33 lakh small business people.
It frees a large number of such assesses in the MSME category from maintaining detailed books of account and getting audit done.
The presumptive taxation scheme is to be extended to professionals with gross receipts up to Rs 50 lakh with the presumption of profit being 50% of the gross receipts.
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