It has also extended tax benefits for housing sector so as to promote construction industry.
The rate of tax on royalty and fees for technical services has also been reduced from 25% to 10%.
The government has initiated tax incentives for Start-up India.
The ministry has taken various steps to give relief to the small tax payers and to the small business and professionals.
The limit of deduction that can be claimed under section 80C of Income tax Act 1961 has been enhanced from Rs. 1 lakh per annum to Rs. 2 lakh per annum, subject to the additional Rs. 50,000/- being contributed to NPS, the statement said.
Further, the scope of presumptive taxation regime for small businesses has been extended by increasing the turnover up to Rs. 2 crores. The presumptive taxation benefit is now available for professionals having turnover upto Rs. 50,00,000/-, it added.