Budget 2016: Cigarettes, Cars, Jewellery Get Costlier

Buying a car just got costlier as Finance Minister Arun Jaitley has announced a 1% additional tax on cars costing above Rs 10 lakh. Small cars too have not been spared as a 1% infra cess has been levied on them.
A 2.5% infra cess will be imposed on diesel cars.
Jaitley also said that a 4% additional levy will be imposed on high-capacity passenger vehicles and SUVs.
Apart from cars, here’s a list of things that have become more expensive
Cigarettes: Cigarette prices will also go up as the finance minister proposed to hike excise duty on tobacco (except bidis) by 10-15 per cent .
Jewellery: A 1 percent excise duty has been levied on gold and diamond jewellery.
Aerated drinks (Coke, Pepsi) and Mineral water will get costlier by 3%.

Jaitley’s 9 Pillars For Transforming India

Finance Minister Arun Jaitley today listed ‘nine pillars’, including tax reforms, promoting ease of doing business and ensuring fiscal discipline, that will transform India.

Unveiling the Budget 2016-17, he said the pillars also include emphasis on governance reforms.

The other pillars, he added, include focus on agriculture and rural areas with a view to doubling farm income by 2022.

Besides, he said, government will lay greater emphasis on social sectors, education and skill building and job creation for building a knowledge based and productive economy.

The government, Jaitley said, will also focus on infrastructure investment, financial sector reforms, fiscal discipline and tax reforms to reduce compliance burden.

Income Tax Relief Announced For Small Taxpayers

Finance Minister Arun Jaitley announced two new measures to provide relief to small taxpayers in Budget 2016.

1) Mr Jaitley raised the deduction limit under Section 87A of the Income Tax Act from Rs. 2,000 to Rs. 5,000 per annum. Under Section 87A, taxpayers first reduce Rs. 2,000 from their total tax payable. This section applies to those with total income of less than Rs. 5 lakh.
Mr Jaitley said the move will help more than 2 crore taxpayers.
2) The finance minister also announced relief for taxpayers who do not own a house and don't get house rent allowance from employers. So far, such taxpayers got a relief of Rs. 24,000 per year, which has now been raised to Rs. 60,000 per annum, Mr Jaitley said. The measure will provide "relief to those in rented houses", the finance minister added.
3) Mr Jaitley also announced an additional deduction of Rs. 50,000 on interest paid by first-time home buyers on home loans of up to Rs. 35 lakh, provided the house value doesn't exceed Rs. 50 lakh.