New Delhi: The Finance Ministry on May 8 listed out steps taken by the Revenue Department to boost growth and employment by giving relief to small tax payers, businesses and professionals. In a statement, the ministry said the limit of deduction under Section 80C of Income Tax Act 1961 has been enhanced from Rs 1 lakh to Rs 2 lakh per annum, subject to the additional Rs 50,000 being contributed to NPS.
"Revenue Department has taken various steps to give relief to the small tax payers and to the small business and professionals," it said, while listing out the measures announced in the Budgets of 2015-16 and 2016-17. Further, the scope of presumptive taxation regime for small businesses has been extended by increasing the turnover up to Rs 2 crore.
The presumptive taxation benefit is now available for professionals having turnover up to Rs 50,00,000. As regards corporates, the Revenue Department has lowered the corporate tax rates to 25 per cent for new manufacturing companies. Also, the tax benefit for housing sector has been extended to promote construction industry.
Further, the rate of tax on royalty and fees for technical services has been reduced from 25 per cent to 10 per cent. The department has also announced various tax incentives for Start-up India, including 100 per cent tax exemption for three years. The steps, the ministry said, will "boost-up growth and employment generation".