Personal Income Tax reform expands exemptions and rate bands alongside expanded service taxation and targeted indirect tax revisions.
Personal income tax reliefs raise the basic exemption and adjust marginal bands while introducing exemptions for savings interest and preventive health checks; corporate tax rates are unchanged but withholding on certain overseas borrowings and securities transaction levies are reduced; service tax is expanded to a broad base with numerous specified exemptions and an increased rate; excise and customs duties are recalibrated with targeted concessions, exemptions and rate changes across inputs, capital goods and consumer items, accompanied by measures to simplify refunds and study tax code harmonisation. (AI Summary)

Increase in personal income tax exemption could raise disposable income for salaried taxpayers and adjust slab thresholds.
Proposals would raise the personal income tax exemption threshold and adjust tax slab ceilings; increase interest deduction for self occupied housing and expand investment-linked deductions including infrastructure bond incentives and higher aggregate savings deductions; remove the deemed let out rule for second self occupied properties to avoid notional rental taxation; and raise exemption limits for HRA, transport and children's education allowances as well as medical reimbursement, aligning some measures with the proposed Direct Tax Code and easing tax burden on salaried taxpayers. (AI Summary)