Overall

- FY17 fiscal deficit target retained at 3.5%

- No change in tax slabs - Click here for 2015-16 tax slabs

- Limit of deduction of rent paid under section 80GG raised to Rs 60,000 per annum from Rs 24,000

- Deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned in 2016-17 for first time home buyers, where house cost does not exceed Rs 50 lakh

- Only 40% of EPF/NPS total corpus withdrawn at the time of retirement will be tax exempt. The remaining 60% will be tax exempt only if invested in annuities. The proposal is not finalized and government has clarified that tax will be applied only on the interest earned and will not be applicable to individuals with basic income of upto 15,000 per month

Indirect/Service Tax

- Krishi Kalyan Cess, @ 0.5% on all taxable services, effective 1^st June 2016

Make-in-India/Start-up India

- New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions

- 100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019

Automotive

- An infrastructure cess of 1 percent on small petrol, LPG, CNG cars, 2.5 percent on diesel cars of certain capacity and 4 percent on other higher engine capacity vehicles and SUVs has been levied.
 

Black Money

- Domestic taxpayers can declare undisclosed income by paying tax at 30%, and surcharge at 7.5% and penalty at 7.5%, which is a total of 45% of the undisclosed income