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II. Benefits/Relief from Taxation

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1.STT:

It isproposed to reduce the Securities Transaction Tax (STT) from 0.125 percent to 0.1 percen to fthe value of the securities transactions.

2.Deductions:

Deduction in respect ofintereston Savings Bank Account to theextent of Rs.10,000/­.

Deduction in respect ofany payment made by an assessee on account of preventive health check‐up of self, spouse, dependent children orparent upto a limitofRs.5000/­withinthe existing limits prescribed in the section80D.

3.Capital Gains Exemption:

The capital gains tax on sale of aresidentialproperty is exempted ifthesale consideration isused for subscribing inequity shares of amanufacturing SME company which in turn shall utilize the funds for purchase of new plant and machinery.

4.Baggage Allowance: Baggage allowance for Indians travellingabroad has increasedthe duty‐free allowance for eligible passengersof Indian originfrom Rs.25,000 to Rs.35,000 and for children of up to 10 years from Rs.12,000 to Rs.15,000

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