New Delhi: Small saving schemes including PPF, Kisan Vikas Patra (KVP) and senior citizen deposits in post offices will earn lower interest rates from Friday as new fiscal year kicks in.
However, first time home buyers will get additional tax benefit for purchase of residential properties of value up to Rs 50 lakh. There is a good news too for those investing in new pension scheme (NPS) for their retirement, as now 40 per cent of their corpus will be tax exempt during withdrawal as per the Budget proposal.
Also passengers coming into the country and not carrying dutiable goods will not have to fill up customs declaration from Friday under a new regime in which duty-free allowance of passengers has been marginally increased.
However those coming from China will no longer enjoy any duty-free allowance. Now only flyers carrying prohibited and dutiable goods will have to fill up the declaration form.
The Finance Bill 2016 introduced by finance minister Arun Jaitley will provide Rs 50,000 tax benefit on loan up to Rs 35 lakh taken for residential house. This incentive is proposed to be extended to a house property of a value less than Rs 50 lakh in respect of which a loan of an amount not exceeding Rs 35 lakh has been sanctioned during the period from the April 1, 2016 to March 31, 2017.
It is also proposed to extend the benefit of deduction till the repayment of loan continues. The deduction is over and above the limit of Rs 2 lakh provided for a self-occupied property.
