Salaried persons who get a lump sum amount without an HRA component can claim a maximum (additional) deduction of Rs. 2000 per month under Section 80 GG.
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However, while the government has done a lot for the rural India and the agriculture sector, it has done just a mere favor for the tax payers.
“Tax evasion will be countered strongly”, he warned.
But Jaitley said it would stick to its ambitious target to cut the fiscal deficit to 3.5 percent of GDP in 2016-2017.
“The budget presented by the Finance Minister is high on rhetoric, flawed on comparisons”.
Having overtaken China as the world’s fastest-growing economy, India is seen as a bright spot in the global economy.
Jaitley in his Budget had said, “Customs and excise duty structure plays an important role in incentivizing domestic value addition towards Make in India campaign of our Government”.
Further, the minister said the Reserve Bank of India Act will be amended to provide statutory basis for monetary policy code.
India has posted impressive growth in recent fiscal quarters, despite concerns of economic headwinds.
Still some companies said more attention should have been given to the manufacturing sector even as the rival Congress party called it a “wasted opportunity”.
The Government proposes to allocate Rs 97,000 crore allocation for road sector including rural roads.
The focus on infrastructure spending through Deendayal Upadhayaya Gram Jyoti Yojna and the Integrated Power Development Schemes is clearly visible with a massive outlay of Rs 221,246 crore for 2016-17.
Moving forward to digital literacy and helping entrepreneurship, the finance minister said that training of entrepreneurship will be provided throughout the schools and colleges across the country.
Overall, Rs.87,765 crore was being allocated for rural development as a whole. Capital expenditure on defence has been put at Rs 86,340 crore against Rs 81,400 crore. Besides, Jaitley also talked about rural areas or economy as many as 25 times.
The initiative would increase the income of farmers over the next five years through a series of measures including boosting a crop insurance scheme, increasing access to markets and a massive injection of funding to village councils.
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Eating out, chilling at a pub or lounge, and chatting with your girlfriend for hours will blow a bigger hole in your pocket thanks to Union finance minister Arun Jaitley’s new Krishi Kalyan cess. In education, he focused more on higher education as against the previous year’s tradition when school education remained at centre, say professors. “Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses”, Jaitley said.
