- No tax on up to Rs 10,000 interest from savings bank account
- Sec 80C investment limit increased to Rs 1.5 lakh
- Housing loan interest deduction increased to Rs 2 lakh
- Holding period for long-term capital gains from non-equity funds increased to three years. To be taxed at 20% after indexation.
- Additional Rs 50,000 deduction for contribution to NPS under Sec 80CCD(1b)
- Home loan interest for house given on rent to be capped at Rs 2 lakh.
- Minimum holding period for long term capital gains from real estate reduced to two years.
- Rs 50,000 deduction under 80CCG for RGESS funds removed.
- Up to Rs 50,000 interest earned by senior citizens to be tax free. This includes savings bank interest.
- Long-term capital gains beyond Rs 1 lakh from stocks, equity funds to be taxed at 10%
- Additional interest deduction of Rs 1.5 lakh on loans for affordable housing.
- TDS threshold for interest raised to Rs 40,000 (Rs 50,000 for senior citizens).
- 60% of NPS corpus that can be withdrawn on maturity will be tax free.
- Dividends from stocks and mutual funds to be taxed as regular income.
- Ulips with premium Rs 2.5 lakh and above lose tax free status. To be taxed as mutual funds.
- Interest from PF contributions above Rs 2.5 lakh a year to be taxed as regular income.