A brief history of tax laws

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Did you know these tax facts?

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Rs 10,000: Interest earned from any source was exempt under Section 80L till 2006. It was replaced in 2012 by Section 80TTA, which offers exemption for interest on savings bank deposits.

Service tax rates

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5%: Service tax rate when it was first levied by Manmohan Singh in 1994. Service tax rates (not including cess) since 1994 are as follows:
1994: 5%
2002: 10%
2006: 12%
2009: 10%
2012: 12%
2015: 14%
2016: 15%

ELSS Funds

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Till 2006, the maximum deduction for investing in these funds was Rs 10,000. Also, till early 1990s, these could invest only in firms registered in backward areas. As most schemes lost money, the rule was scrapped.

Tax brackets, standard deduction

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11: Number of tax brackets in 1970s with tax rates from 10-85%. With surcharge, the highest rate for individuals was 97.5%.
30%: Standard deduction available on rental income. Standard deduction was introduced for the salaried taxpayers in 1974, but was withdrawn in 2006.

Pension plans

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Rs 10,000 was the maximum deduction you could claim when investing in pension plans from life insurers under Section 80CCC. In 2006, Section 80C removed that cap.

Source : ET wealth