Central Finance Budget 2015 has made following changes relating to
determination of Income Tax payable by Salaried Employees, which provide
income tax exemption.
Taxable Income eligible for full exemption from income tax Rs. 2.5 lakh
same as previous Financial Year, there have no any changed.
2. Tax Rebate Rs. 2,000/- U/s 87A is entitled in this Financial Year 2015-16 as well it will be continued this Financial Year.
3. Include Addition Deduction U/s 80C as Sukanya Samriddhi Account , Max Rs.1.5 Lakh
Snapshot of Salary Structure of Central Govt Employees
Snapshot of Salary Structure of State Govt Employees
The Main Changes in income tax exemptions applicable for the year 2015-16 is as follows:-
Allowance granted to an employee to meet expenditure for the purpose of
commuting between the place of residence and place of duty. Income Tax
Exemption on Transport Allowance is Raised Rs1600/- per month for
general and Rs.3200/- P.M. for Phi. Disable persons.
The total deduction under
this section (along with section 80CCC and 80CCD) is limited to Rs.
1.50 lakh. Some investments, savings, expenditure etc covered under
Section 80 C
Section 80CCD (1): Deduction in respect of Contribution to Pension Account (by Assessee)
Deduction available for the amount paid or deposited in a pension scheme notified or as may be notified by the Central Government subject to a maximum of :
(a) 10% of salary in the previous year in the case of an employee (b) 10% of gross total income in any other case.
Section 80CCD (2): Deduction in respect of Contribution to Pension Account (by Employer)
Deduction available for the amount paid or deposited by
the employer of the assessee in a pension scheme notified or as may be
notified by the Central Government subject to a maximum of 10% of salary
in the financial year. This exemption is in addition to Rs. 1.5 lakh
limit provided under Section 80 CCE for deductions under Section 80 C,
CCC, and 80CCD(1)
Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)
per the Budget 2012 announcements, a new scheme Rajiv Gandhi Equity
Saving Scheme (RGESS) will be launched. Those investors whose annual
income is less than Rs. 10 lakh (proposed Rs. 12 lakh from A.Y. 2014-15)
can invest in this scheme up to Rs. 50,000 and get adeduction of 50% of the investment. So if you invest Rs. 50,000 (maximum amount eligible forincome tax rebate is Rs. 50,000), you can claim a tax deduction of Rs. 25,000 (50% of Rs. 50,000).
Section 80D: Deduction in respect of Medical Insurance
available up to Rs. 30,000/- for senior citizens and up to Rs. 25,000/
in other cases for insurance of self, spouse and dependent children.
Additionally, a deduction for
insurance of parents (father or mother or both) is available to the
extent of Rs. 30,000/- if parents are senior Citizen and Rs. 25,000/- in
other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 55,000/-. From AY 2016-17.
Section 80DDB: Deduction in respect of Medical Expenditure on Self or Dependent Relative
A deduction to the extent of Rs. 80,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred
by resident assessee on himself or dependent relative for medical
treatment of specified disease or ailment. The diseases have been
specified in Rule 11DD. A certificate in form 10 I is to be furnished by
the assessee from any Registered Doctor.
Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account
Deduction from gross total income of
an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of
interest on deposits in savings account ( not time deposits ) with a
bank, co-operative society or post office, is allowable (Assessment
Section 80U: Deduction limit has raised in respect of Person suffering from Physical Disability
of Rs.75,000/- to an individual who suffers from a physical
disability(including blindness) or mental retardation. Further, if the
individual is a person with severe disability, deduction of Rs.
125,000/- shall be available u/s 80U. Certificate should be obtained
from a Govt. Doctor. The relevant rule is Rule 11D.