NEW DELHI: Stating that India is "largely a non-tax compliant society," finance minister Arun Jaitley today said the government is putting a Rs 3 lakh limit on cash transactions.
In addition, the minister gave a significant tax break to those earning between Rs 2.5-5 lakhs, cutting their tax rates to as low as 5 percent from the earlier 10%.
The minister imposed a surcharge of 10 percent for those whose annual income is Rs 50 lakh to Rs 1 crore. The 15% surcharge on incomes above Rs 1 crore will continue.
Stating that political parties continue to receive most funds through anonymous donation, Jaitley announced that the maximum amount of cash donation a political party can receive is Rs 2000 from any one source.
The minister also said the government plans to extend the basket of financial instruments to which the capital gains can be invested without the payment of tax.
There is also a proposal to allow a carry forward of Minimum Alternative Tax for a period of 15 years up from the current 10 yrs now.