Income Tax 2015-16 – Changes relevant to Salaried Employees in Budget 2015,with All in One TDS on Salary for Govt and Non-Govt employees for F.Y.2015-16

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Tax Computed Sheet

While Finance Minister termed Budget 2015-16 as a growth oriented one with due attention to common and poor in India, there were not much changes as far as Income Tax 2015-16 in respect of salaried employees concerned. Personal Income Tax Rates were untouched and as a result Salaried Class will have to pay same Income Tax that they paid last year.
However, following changes have been effected with regard to deductions / exemption allowed from total income of Salaried Employees under various Sections Income Tax Act by which quantum of Income Taxpayable this year may get reduced if an employee is eligible for such deduction / exemption.

Sukanaya Samriddhi Scheme made eligible for deduction under Section 80C Max Rs. 1.5 Lakh

Individuals who are subjected to Personal Income Tax Provisions
can now save Sukanaya Samriddhi Scheme, a newly started savings scheme
with a view to encourage savings in the name of girl child’s education
and marriage, for the purpose of claiming deduction under Section 80C

Additional Income Tax Exemption in respect of Health Insurance Premium under Section 80 D:

Medical expenditure is getting increased day by day and however awareness towards Health Insurance is very minimal in India.
In order to make Health Insurance Schemes more attractive and to cover
entire health insurance premium paid by an employee for the purpose of
deduction under Section 80 D, limits of Health Insurance Premium for
covering individual and a senior citizen for the Income Tax Exemption have been increased to Rs. 25,000 and Rs. 30,000 respectively.
as far as very senior citizens (aged 80 years or more) are concerned
any payment made on account of medical expenditure up to Rs. 30,000
would be eligible for deduction under Section 80D.

More Deduction under Section 80DD for very senior citizens (increased from Rs. 50,000 to Rs. 80,000)

an individual is eligible to deduct up Rs. 50,000 which was spent
towards medical expenditure under Section 80DD, budget 2015 has brought
out an additional provision under this section to allow deduction of Rs.
80,000 for very senior citizens.
condition of producing certificate from a medical doctor under Section
80DDB has been relaxed and it is enough the tax payer produces a
prescription from a specialist doctor.

Additional Income Tax Exemption for Persons with disability under Section 80U:

view of the rising cost of medical care and special needs of a disabled
person, it is 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 to raise the limit of deduction in respect of a person with severe disability from Rs. 1 lakh to Rs. 1.25 lakhs.

Limit under Section 80CCD and Section 80CCC for contribution in NPS and other pension funds raised

additional deduction under section 80CCD to the extent of Rs. 50,000
has been introduced for contributions under the National Pension Scheme.

Deduction towards Transport Allowance increased Rs. 1600 per month

The long due increment in the monthly travel allowance has
now finally materialized. In order to commensurate with the increased
costs of transportation, it is now proposed to be double the original
transport allowance and it shall stand at Rs. 1,600 per month. And more than 80% Rs. 3200/- P.M.

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