The new exemption limit was fixed at Rs. 2.5 lakh — from the existing Rs. 2 lakh. For senior citizens, the exemption limit was raised from Rs. 2.5 lakh to Rs. 3 lakh. Besides, the government raised the tax exemption on home loans from Rs. 1.5 lakh to Rs. 2 lakh.<br />Retaining the tax collection targets, the government kept direct tax rates unchanged and said it will review the direct tax code proposal.<br />Jaitley said, in the current fiscal, the non-tax revenue was seen at Rs. 2.12 trillion rupees, while the capital receipts were seen at Rs. 739.5 billion.<br />In another major move, the foreign direct investment (FDI) limit was raised to 49% in insurance and defence. Jaitley also promised a stable tax regime and the formation of a high-level committee to deal with retrospective taxation, but refused to change rules in such cases.<br />Investors were spooked after the UPA introduced retrospective taxation in 2012, a move that allowed the previous government to raise tens of billions of dollars in tax remands from foreign companies.<br />Government overspending will be brought down dramatically in the next three years, with the fiscal deficit reduced to 3% in 2016/17, Jaitley said.<br />He projected the fiscal deficit at 3.6% of the gross domestic product (GDP) in 2015/16, accepting the fiscal deficit target of 4.1% in the current fiscal.<br />The finance minister also said the government aimed at sustained growth of 7-8% in the next 3-4 years, as the Economic Survey projected 5.4-5.9% GDP growth in fiscal 2014-15.<br />Jaitley told Parliament that the new government, in office for less than, had inherited a "challenging" situation of low growth and high inflation from the previous Congress regime. "Slow decision making has resulted in a loss of opportunity."<br />India's gross domestic product (GDP), the total value of all goods and services produced within the country's boundaries, has clocked sub-5% growth in two consecutive years.<br /><br /><br /><br />For More information on this news visit: http://www.itvnewsindia.com/<br />For More information on this news, visit: http://www.itvnewsindia.com/hindi<br />Connect with us on Social platform at: http://www.facebook.com/IndiaNewsTV<br />Subscribe to our You Tube channel: https://www.youtube.com/user/itvnewsindia
