CHANGES IN PERSONAL TAXATION

Lower tax:

The tax rate for income between Rs 2.5 lakh and Rs 5 lakh has been reduced from 10 per cent to 5 per cent.

Lower rebate:

The rebate under Section 87A has been reduced from Rs 5,000 to Rs 2,500. This is for those whose taxable income is less than Rs 3.5 lakh

Surcharge on rich:

Taxpayers whose income exceeds Rs 50 lakh but is less than Rs 1 crore will pay a surcharge of 10 per cent

Capital Gains:

Holding period for computation of long-term capital gains on house property has been reduced from three to two years

Indexation:

The base year for indexation is proposed to be shifted from 1981 to 2001 for assets

Loss from house property:

The set-off for ‘loss from house property’ from other income streams has been restricted to Rs 2 lakh

HRA:

The Budget has proposed a TDS of 5 per cent on rental payments exceeding Rs 50,000 per month