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Winners and losers – Times of India

NEW DELHI: Finance minister Nirmala Sitharaman on Friday presented the Union Budget in the Parliament. The first budget of Narendra Modi government’s second tenure is the maiden one for Sitharaman.

Here is a list of the winners and losers from the budget announcement:

For taxpayers

Winner: Interest on loan taken by first-time buyers to purchase house valued up to 45 lakh will get total deduction of 3.5 lakh

Pre-filled income tax returns to be made available to taxpayers

Faceless e-assessment to be launched, all tax communications will come from central cell

Loser: Surcharge increased to 25 per cent from existing 15 per cent for taxpayers with taxable income of 2 crore-5 crore, bringing effective tax rate to 39 per cent; surcharge increased to 37 per cent on taxable income above 5 crore, resulting in maximum tax rate of 42.7 per cent

Individuals and HUFs to deduct 5 per cent tax at source on payments made to resident contractors and professionals where aggregate payments exceed 50 lakh during a financial year

Mandatory filing of tax returns even if income is below exemption limit if amount spent on foreign travel exceeds 2 lakh or annual electricity bill exceeds 1 lakh

For investors

Winner: Entire lump sum withdrawal from NPS, which is limited to 60 per cent of accumulated corpus, to be exempt from tax

Long-term capital gains from sale of house exempted from tax if invested in a startup. Sunset clause extended to March 31, 2021

Securities Transaction Tax on options to be levied on difference between strike and settlement price

Loser: 20 per cent tax on buyback schemes of listed companies after July 5

For businessmen

Winner: Corporate tax rate reduced to 25 per cent for companies with turnover up to 400 crore in 2017-18 Relaxation in conditions of carry forward and set-off losses for startups

Dispute resolution-cum-amnesty scheme for legacy litigations for central indirect taxes like service tax & excise

Multiple labour laws to be streamlined into a set of four codes to ensure standardisation

Loser: 2 per cent TDS on cash withdrawals exceeding 1 crore during the year from an account with a bank/post office

Businesses with turnover exceeding 50 crore to provide for electronic mode of payment without levying any charges. Failure to do so will result in penalty of 5,000 per day

Misuse of export benefits exceeding 50 lakh to be cognisable and non-bailable offence

For consumers

Loser: Central taxes and cess on petrol and diesel increased by 2 per litre

To promote Make in India, customs duty on import of certain electronic goods, metal fittings and auto parts increased. Prices of luxury cars set to rise

Winners and losers – Times of India

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