1- A personal accident plan “Pradhan Mantri Suraksha Bima Yojana”, will be launched, which will provide an accident cover of Rs 2 lakh for an annual premium of Rs 12 or Re 1 / day.
2- A life insurance plan – “Pradhan Mantri Jeevan Jyoti Bima Yojana”, will be launched for the underprivileged under which a life cover of Rs 2 lakh will be available for a nominal premium of Rs 330 per year for the age group of Rs 18-50 years.
3- A new pension plan “Atal Bihari Pension Yojana”, will be launched (in June 2015) to provide an defined pension depending on the contribution. The government will contribute 50% of the contribution made by the individual limited to Rs 1,000 each year for it’s 5 years for new accounts opened before 31st December 2015.
4- The deduction for contribution to certain pension funds under section 80CCC has been increased to Rs. 150,000 from present Rs. 100,000. Also, an additional deduction under section 80CCD to the extent of Rs. 50,000 has been introduced for contributions under the National Pension Scheme (NPS).
5- The limit for deduction under section 80D in respect of health insurance premium increased from Rs.15,000 to Rs.25,000, while for senior citizens, the limit will stand increased to Rs.30,000 from the existing Rs.20,000.
A fresh deduction has been proposed in respect of very senior citizens (aged 80 years or more) to the extent of any payment made on account of medical expenditure, but restricted to Rs. 30,000.
The aggregate deduction available to any individual in respect of health insurance premium and the medical expenditure incurred would, however, be limited to Rs. 30,000.
6- FM proposed to amend section 80DD and section 80U so as to raise the limit of deduction in respect of a person with a disability from Rs. 50,000 to Rs. 75,000. It is also proposed to raise the limit of deduction in respect of a person with severe disability from Rs. 1 lakh to Rs. 1.25 lakhs.
7- FM increased section 80DDB limit to Rs. 80,000 for very senior citizens.
8- FM proposed that all payments to be made to recipients of Sukanya Samriddhi Scheme, including interest payments and withdrawals from the account under the scheme, would be fully exempt.
9- No change in income tax rate.
10- Levy of existing rate of service tax 12% is being increased to 14% from such date that will be appointed by the Central Govt. by Notification. Thus, the net effect in the rate will be from 12.36% (inclusive Cess) to 14%. The Cess will continue to be levied in service tax till the time the revised rate comes into effect.
In addition, a new levy termed as “Swachh Bharat Cess” shall be introduced as “Service Tax” @2% on the taxable value from a date to be notified by the Ministry.
Thus the net effect in the rate will be 16% on the value of taxable services.