Direct tax
Exemption limit for individual taxpayers raised from Rs 1.6 lakh to Rs 1.8 lakh giving uniform tax relief of Rs. 2,000.
Current surcharge of 7.5% on domestic companies to be reduced to 5%.
Rate of Minimum Alternative Tax to be increased from 18% to 18.5% of book profits.
Tax incentives extended to attract foreign funds for financing of infrastructure.
Investment-linked deduction to businesses developing affordable housing.
A net revenue loss of Rs 11,500 crore estimated as a result of these proposals.
Additional deduction of Rs 20,000 for investment in long-term infrastructure bonds to be extended for one more year
Indirect tax
To stay on course for transition to GST.
Central Excise Duty to be maintained at standard rate of 10%.
Nominal Central Excise Duty of 1% imposed on 130 items entering in the tax net.
Lower rate of Central Excise Duty enhanced from 4% to 5%.
Optional levy on branded garments or made up proposed to be converted into a mandatory levy at a unified rate of 10%.
Peak rate of Custom Duty held at its current level.
Basic Custom Duty reduced for specified agricultural machinery from 5% to 2.5%.
Basic Custom Duty reduced on micro-irrigation equipment from 7.5% to 5%.
Rate of Export Duty for all types of iron ore raised and unified at 20% ad valorem. Full exemption from Export Duty to iron ore pellets.
Basic Custom Duty on two critical raw materials of cement industry, namely petcoke and gypsum to be reduced to 2.5%.
Full exemption from basic Customs Duty and a concessional rate of Central Excise Duty extended to batteries imported by manufacturers of electrical vehicles.
Concessional Excise Duty of 10% to vehicles based on Fuel cell technology.
Excise Duty on LEDs reduced to 5% and special CVD being fully exempted.
Basic Customs Duty on solar lantern reduced from 10 to 5%
Relief measures for raw pistachio, bamboo for agarbatti, lactose for the manufacture of homoeopathic medicines, sanitary napkins, baby and adult diapers.