Budget Highlights****

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**[image: *] **Exemption limit for the general category of individual
taxpayers proposed to be enhanced from `1, 80,000 to `2, 00,000 giving tax
relief of`2,000.****

**[image: *] **Upper limit of 20 per cent tax slab proposed to be
raised from `8 lakh to `10 lakh.****

**[image: *] **Proposal to allow individual tax payers, a deduction of
up to `10,000 for interest from savings bank accounts.****

**[image: *] **Proposal to allow deduction of up to `5,000 for
preventive health check up.****

**[image: *] **Turnover limit for compulsory tax audit of account and
presumptive taxation of SMEs to be raised from `60 lakhs to `1 crore.****

**[image: *] **Exemption from Capital Gains tax on sale of residential
property, if sale consideration is used for subscription in equity of a
manufacturing SME for purchase of new plant and machinery.****

**[image: *] **Proposal to extend the levy of Alternate Minimum Tax to
all persons, other than companies, claiming profit linked deductions.****

**[image: *] **Number of alignment made to harmonise Central Excise
and Service Tax. A common simplified registration form and a common return
comprising of one page are steps in this direction.****

**[image: *] **To maintain a healthy fiscal situation proposal to
raise service tax rate from 10 per cent to 12 per cent, with corresponding
changes in rates for individual services.****

**[image: *] **Given the imperative for fiscal correction, standard
rate of excise duty to be raised from 10 per cent to 12 per cent, merit
rate from 5 per cent to 6 per cent and the lower merit rate from 1 per cent
to 2 per cent with few exemptions ****

**[image: *] **Basic customs duty proposed to be enhanced for certain
categories of completely built units of large cars/MUVs/SUVs.****

**[image: *] **Branded Silver jewellery exempted from excise duty.****

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