Union Budget 2016: No change in existing income tax slabs

For salaried personnel, Finance Minister Arun Jaitley did not make any changes in existing income tax slabs. But benefitting those living in rented houses, the government made a proposal for raising the deduction for rent paid from Rs 20,000 to Rs 60,000. Additional exemption of Rs. 50,000 was provided for housing loans up to Rs. 35 lakh, with the condition that the cost of housing would not be above Rs. 50 lakh. It also exempted Service tax for housing construction of houses less than 60 sq. m.

Besides, FM proposed govt’s plans to pay EPF contribution of 8.33% for all new employees for first three years and unveiled the plans to allocate Rs. Rs 1,000 crore for new EPF (Employees' Provident Fund) scheme.  Lastly, 15 per cent surcharge was levied on income above Rs. 1 crore.