Income Tax Deductions for Individual Taxpayers for the Financial Year 2015-16 As per Finance Budget 2015


The Figure
Rs.4.44 lakhs, quoted in the Budget 2015 speech by Finance Minister, drew the
huge attention of the Individual Taxpayers. While calculating the available tax
deductions, Arun Jaitely has said that an Individual Taxpayers enjoys tax
deductions of up to Rs.4.44 lakh a year. But this figure does not include many
other tax deductions which are available and commonly utilized by the taxpayers.
If we summat all the tax deductions available under section 80C to 80U plus other
allowances and tax free reimbursements, the tax deductions pile-up to Rs.10
lakhs.


Budget 2015: Tax Deductions of Rs.4.44 Lakhs

Deduction
Amount
Remarks
Tax-Savings
investments u/s 80C
Rs.1,50,000
EPF, PPF, SSA,
Insurance Premium, NSC, ELSS, Home Loan Principal Repayment etc.
Employee
Contribution towards NPS u/s 80CCD(1B)
Rs.50,000
Separate deduction
for contribution towards National Pension Scheme announced in Budget 2015
Home Loan Interest
u/s 24(b)
Rs.2,00,000
Home Loan Interest
Paid on Self Occupied House Property
Health Insurance
Premium Paid u/s 80D
Rs.25,000/- & Sr.Citizen Rs. 30,000/-
Limit increased by
Rs.10,000 in budget 2015
Transportation
Allowance
Rs.19,200
Allowance Doubled
in budget 2015.
Total Deduction
Rs.4,44,200

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