Finance Minister Nirmala Sitharaman appreciated the honest taxpayers of India and told: “how the government had been able to work for a collective dream of inclusive development and continue to do so.”
She also pointed out that India is now the lowest among the list of external debt to GDP which is now less than 5%. In the support of women entrepreneurship and to further encourage them, women SHG Interest Subvention Programme to be expanded to all districts in India. Rs 5,000 will be allowed to every woman who is verified SHG member and have a Jan Dhan account.
FM Nirmala Sitharaman also proposes more transparency in the tax admin. Currently, the lower tax rate of 25% is only limited to the firms with an annual turnover of Rs. 250 crore. But, Finance Minister proposed to widen this to all companies with the annual turnover of up to Rs. 400 crore.
Not only people will get upfront incentives on purchasing EVs but there will be an additional income tax deduction of Rs. 1.5 lakh on the interest paid on loans for EVs.
In the support of startups that were suffering from angel tax from a long time now will be subjected to scrutiny in valuation. But, in order to that happen they will need to file declarations.
Now, the self-occupied house owners are allowed an additional tax deduction of Rs. 1.5 lakh on interest paid on housing loans. That means those purchasing affordable house will get tax relief up to Rs. 3.5 lakh on interest paid.
She also announced that from now on there will be no longer need of PAN. One can file ITR without PAN by quoting Aadhaar.