Tax Rebate: Individual with taxable income up-to INR 5 lakhs will get full tax rebate. Which means if your taxable income after all the investment deductions and eligible income exemptions is up-to INR 5 lakhs, there is no tax to be paid
If the taxable income of individual is beyond 5 lakhs ( after claiming eligible deductions and exemptions), rebate on tax shall not be applicable.
Standard deduction on salary income has been raised from INR 40000 to INR 50000. This standard deduction can be claimed without any supporting documents to be submitted to the employer.
Tax on Notional rent :Individual owning more than one house property which are kept for personal use, were required to pay tax on notional rent on the additional house properties (i.e., one house property can be held for personal use without tax on notional rent) . However, the budget has enabled the tax payer to not pay tax on notional rent on up-to 2 houses kept for personal use and therefore henceforth the tax on notional rent shall be paid on house properties held for personal use, which are in addition to 2 house properties.
Tax to be deducted by banks on interest earned by depositors: Tax shall not be deducted at source by banks if the interest earned on fixed deposits it up-to INR 40,000 per year. However, tax payers are still liable to pay tax on this interest and the details have to be discloses in the tax return to pay the tax at the time of filing the tax return. If the total income of the Individual is below INR 5,00,000 than as per the new rules there will not be any tax liability to be paid
Capital Gains exemption: Individual is eligible for a tax exemption on gains arising from sale of a residential house property , if the gain is invested in one new house property. The budget enables the Individual to invest in 2 new house properties and still claim the exemption on sale of residential house property.