Major Changes in Union Budget 2016-17 relating to Certified Financial Planner [CFP] Certification
Major Changes in Union Budget 2016-17
- Basic exemption limit has been kept unchanged
- Individual Slabs – General
Key highlights on Personal Finance
- Section 80C limits is kept unchanged.
- Tax rebate u/s 87A has been increased to Rs. 5,000/- (from existing Rs. 2,000/-) for assesses whose income is less than Rs. 5 lakh.
- Section 80GG limit has been increased to Rs. 60,000/- per annum (from existing limit of Rs. 24,000/- per annum).
- First time buyers of house property in FY 2016-17 will be eligible for an additional deduction of Rs. 50,000/- per annum on the interest paid on housing loan provided the total value of house purchased is less than Rs. 50 lakh and loan availed is less than Rs. 35 lakh. Hence, in such cases, interest paid on housing loan can be claimed upto a maximum of Rs. 2,50,000/- for the said year.
- Surcharge to be charged at 15% to assesses whose income is greater than Rs. 1 crore.
- An additional Dividend Distribution Tax would be charged at 10% to assesses who receives dividend in excess of 10 lakh per annum.
- Withdrawal upto 40% of corpus from NPS would be exempt from tax.
- Krishi Kalyan Cess to be imposed on all taxable services at 0.5% from 1st June 2016.
- Presumptive tax scheme to professionals whose income is less than 50 lakh.