Government will also provide income tax deduction of Rs 1.5 lakh on interest paid on loans for purchase of electric vehicles.
New Delhi: Finance Minister Nirmala Sitharaman on Friday said the government is proposing additional tax deduction of Rs 1.50 lakh on interest paid on home loans taken up to March 2020.
Presenting the first Budget of the Modi government in its second term, Sitharaman said the government will also 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.
Sitharaman also proposed that 25 per cent corporate tax will apply on companies with up to Rs 400 crore turnover; covering 99.3 pc 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 tax department, she said adding the period of exemption from capital gains from sale of start-up has been extended.
She also said one-time six-month partial credit guarantee to be given to PSU banks for purchase of high-rated pooled assets of financially sound NBFCs amounting to Rs 1 lakh crore in 2019-20.