Income Tax Changes relevant to Salaried Employees in Budget 2015, With All in One Tax Preparation Excel Based Software for Govt and Non-Govt employees and Central Govt Employees for F.Y.2015-16

As per the Finance 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 are 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.
Salary Structure for Govt & Non Govt Employees
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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 Tax payable the financial year 2015-16 may get reduced if an employee
is eligible for such deduction / exemption.

Sukanaya
Samriddhi Scheme made eligible for deduction under Section 80C

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 max. Rs. 1.5 Lakh.

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
purpose of Income Tax Exemption have been increased to Rs. 25,000 and
Rs. 30,000 respectively.
Moreover,
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)

While 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.
The
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:

In
view of the rising cost of medical care and special needs of a disabled person, it is amend section 80DD and
section 80U so as to raise the limit of deduction in respect of a person with a
disability to Rs. 75,000.
It
is also raised 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

With an agenda to promote
social security measures and to bring the existing provision in line with the
recently increased overall limit of Rs. 150,000, the deduction for contribution
to certain pension funds under section 80CCC has been increased to Rs. 150,000
from present Rs. 100,000.
Also, an 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 to Rs. 1600/- P.M. & 3200/- P.M.

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 &
Rs.3200/- P.M. for above 80%
Salary Structure for Central Govt Employees
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