Cigarettes, SUVs to be more expensive, some insurance exemptions

Budget 2016 What will be cheaper and costlier for you
news Finances Monday, February 29, 2016 - 14:04

As the government presents the union budget, here’s what it means for the people. The News Minute has a compiled a ready reference of what will get cheaper and what will make you feel the pinch:

What's going to be cheaper and how you may end up saving:

Baggage allowance for fliers likely to be increased.

Service tax to be exempted on general insurance schemes under Nirmaya Scheme

Service tax exempted for construction of houses less than 60 sq. metres

Pension withdrawal of up to 40% to be made tax-free at the time of retirement

Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses.

First-time homebuyers to get additional deduction of Rs 50,000 on interest for loan up to Rs 35 lakh. Cost of house should not be more than Rs.50 lakh

I-T slabs remain unchanged:

Govt. will pay EPF contribution of 8.33% for all new employees for first three years

For tax payers earning below Rs 5 lakh, ceiling on tax rebate has been increased by Rs 3,000 to Rs. 5000.

A new health protection scheme for health cover upto 1 lakh per family; Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme

Reduction of customs duty on refrigerated containers

Exemptions for braille paper

 

How much more expensive

Excise duty on most tobacco products (except beedis) raised by 10-15%. Shares of ITC plunged over 5 per cent on the announcement.  

Excise duty on branded ready-made garments

Prices of SUVs and other on high-capacity vehicles to go up as government levies infrastructure cess of 4%

Additional 1% service charge on luxury cars of costing more than Rs.10 lakh, and cash purchase of goods and services over Rs. 2 lakh

The government has charged .5% Krishi Kalyan cess on all taxable services: Airport, banking, cable operator, club / association membership, broadcasting, beauty treatment, advertising, credit card/ debit card / any other payment card related card, construction, insurance, telecomm / advertising/ online communications, cab taxi,

Dividend in excess of Rs 10 lakh a year to be taxed at additional 10%

Jewellery to be costlier as 1% excise duty is imposed

Pollution cess of 1% on small petrol, LPG and CNG cars; 2.5% on diesel cars of certain specifications. The cess on small diesel cars will be 2.5 per cent, while bigger cars will have to pay a cess of 4.5 per cent.

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