Finance Minister Nirmala Sitharaman said the government is proposing additional tax deduction of Rs 1.50 lakh on interest paid on home loans that are taken up to March 2020.
She also said the government will provide income tax deduction of Rs 1.5 lakh on interest paid on loans taken for purchase of electric vehicles.
The finance minister also proposed investment-linked tax benefit on manufacturing of products like lithium batteries and solar chargers.
In her maiden budget presentation, she proposed that 25 percent corporate tax be applied on companies with up to Rs 400 crore turnover thereby covering 99.3 percent of corporate India.
The government aims to simplify tax administration and bring transparency, she added.
On startups, she said those who provide details in returns will have no scrutiny in respect of valuation of share premium, saying startups have taken firm root and their growth needs to be encouraged.
Funds raised by startups will not require any scrutiny by the tax department, and the period of exemption from capital gains from the sale of startup has been extended, she said
She also said that one-time six-month partial credit guarantee will be given to public sector banks for purchase of high-rated pooled assets of financially sound non-banking financial companies amounting to Rs 1 lakh crore in 2019-20.
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