Guide to Personal TaxProposal:- It is proposed to abolish wealth tax from FY 2015-16Impact:- This will lower the compliance burden on taxpayers who will not have to value their taxable assets and file a separate wealth tax return. It will also ease the administrative burden on the tax department. However, the assets will now have to be disclosed in the income tax return. Proposal:- Rate of surcharge on income exceeding Rs. 1 Crore is to be increased to 12 % from 10%.Impact:- This will increase maximum marginal rate of tax to 34.61% from 33.99% for the super rich.P:- Exemption limit for transport allowance is to be increased to Rs. 1,600 per month from Rs. 800 per month. I:- This will enable tax savings of upto Rs. 3,322.P:- Deduction for medical insurance premium, paid for self and family is proposed to be increased to Rs. 25,000 from 15,000. Similar deduction for premium paid for parents is also proposed to be increased to Rs. 25,000 from Rs. 15,000. Where premium is paid for senior citizens (aged 60 years and above), the deduction is proposed to be increased from Rs 20,000 to Rs. 30,000. For uninsured very senior citizens (aged 80 years and above), the deduction withing the above ceiling of Rs. 30,000 is available for medical expenses incurred. I:- If all of the above are availed of, it will enable tax savings of up to Rs. 6,922.P:- Deduction for contributions to the New Pension Scheme is currently capped at Rs 1 Lakh. It is proposed to remove such cap and allow deduction up to the overall ceiling of Rs 1.5 Lakh (as available for deduction in various savings instruments). Further, an additional deduction of Rs 50,000 for contributions to the NPS is proposed. I:- Taxpayer can claim deductions for contributions to the New Pension Scheme up to the overall ceiling of Rs 1.5 Lakh. Further, an additional deduction of Rs. 50,000 will enable tax savings of up to Rs. 17, 304.P:- Cap for the deduction for contributions to prescribed annuity/pension plan such as that of Life Insurance Corporation has gone up from Rs. 1 Lakh to Rs. 1.5 Lakh.I:- This will enable a taxpayer to claim deduction for contribution to such plans up to the overall ceiling of Rs 1. Lakh.P:- Deduction under Section 80C is proposed to be introduced retrospectively from 2014-15 for subscriptions made towards Sukanya Samriddhi Scheme, relating to education of the girl child. Further, any payment received from such a scheme is proposed to be exempt from tax. I:- This will enable the parent/legal guardian of girl child to not only claim deduction on investments received from the scheme. P:- Deduction under Section 80G is proposed to be introduced retrospectively from FY 2014-15 fro donation made to Swachh Bharat Kosh and Clean Ganga Fund to the extent of 100% of the donations. Similar deduction is available for donations made to National Fund for Control of Drug Abuse from 2015-16. I:- This will enable tax saving on the full amount of donations made to these funds. P:- It is proposed to make the employer responsible fro obtaining evidence of deductions/exemptions/set-off of certain losses of employees for computing the amount of tax deductible at source. I:- This will increases the administrative burden for employers.P:- It is proposed to deduct tax @10% on premature taxable withdrawal from the Provident fudn where such payment exceeds Rs 30,000. Where the employee has not quoted his PAN, the deduction of tax will be required to be made at the applicable maximum marginal rate. I:- This will enable tax authorities to ensure tax compliance on such premature withdrawals from the provident fund.P:- It is proposed that no person will accept from any person will accept from any person any loan/deposit/advance, in relation to transfer of an immovable property, in cash for Rs. 20,000 or more. Also, it is proposed that no person will repay any loan/deposit/advance, in relation to transfer of an immovable property, in cash for Rs 20,000 or more. I:- This move is intended to curb generation of black money by way of dealings in cash in immovable property transactions. Guide to Indirect TaxP :- Service Tax is proposed t be increased from 12.36% to 14%. Similarly rates for composition schemes (combining goods and services such as restaurant) as available to air travel agents, money changers, life insurance and lottery distributor selling agents, shall also be proportionaltely increased. I:- All servecs shall no become costlier. P:- New Swachh Bharat Cess(SBC) shall be sintroduced upt to 2% on value of an or all taxable services from a date to be notified. Thus, the total service tax charge would be 16%.I:- Certain services, (to be notified) shall become costlier, It is not yet clear whether the SBC will apply to all services or only the specified services. Thus, for example, if SBC is levied at 2 % on construction services, the same