Budget 2015: Individual tax payers to benefit, no change in tax rate in the Financial Year 2015-16 and Assessment Year 2016-17

No changes the
income tax rates or increasing the exemption limits for individuals, Union
finance minister Mr. Arun Jaitley on Saturday proposed increasing the range of tax
deductible investments/spend.
Presenting the budget proposals for 2015-16 in the Lok Sabha, Mr.Jaitley said the government is proposing to rationalise various tax exemptions
and incentives to reduce tax disputes and improve tax administration.
The proposals mentioned by the finance minister made clear the
government’s focus on enlarging the tax-exempt investments/spend.
Mr.Jaitley said the proposals would result in tax deductions to the
tune of around Rs 440,000 crore.
Mr.Jaitley said in order to encourage savings and to promote health
care among individual tax payers, it is proposed to increase the limit of
deduction on account of health insurance premium from Rs.15,000 to Rs.25,000 –
for senior citizens this limit is to be increased from Rs.20,000 to Rs.30,000.
For senior citizens above the age of 80 years – who are not
eligible to avail of health insurance – deduction will be allowed for medical
expenses up to Rs 30,000.
The deduction limit of Rs 60,000 on expenditure on account of
specified diseases — like cancer — will be enhanced to Rs 80,000 in the case
of senior citizens.
TheTax Section 80U have raised up to Rs. 75,000/-  for
differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000.
It is also  increase the limit of tax deduction from
Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
According to Jaitley, investment in Sukanya Samriddhi Scheme
will be eligible for deduction under section 80C
of the income tax and any
payment from the scheme shall not be liable to tax.
Limit on deduction on account of contribution to a pension fund
and the new pension scheme is  increased from Rs 1 lakh to Rs 1.5
lakh
. Additional deduction of Rs 50,000 will be allowed for contribution to the
new pension scheme under section 80 CCD of Income Tax Act — increasing the
exemption from Rs 1 lakh to Rs 1.5 lakh.
Mr.Jaitley also doubled the transport allowance exemption to Rs
1,600 per month.
According to him, the details of tax deductions proposed are as
follows:

Deduction u/s 80C – Rs.150,000; Deduction u/s 80CCD – Rs.50,000;
Deduction on account of interest on house property loan (Self-occupied
property) – Rs.200,000; 
Deduction u/s 80D on health insurance premium –
Rs.25,000; Exemption of transport allowance – Rs 19,200/-

Leave a Reply

Your email address will not be published. Required fields are marked *