In the Finance Budget 2015-16, without doing any changes in Income Tax Slabs and there are no changes in Section 80C limits for the salaried. But limit of some Tax Section has raised which is given below :-
– Deductions under section 80D are allowed on health insurance premium paid. In case of premium paid for senior citizens the deduction allowed shall be up to Rs 30,000. This is a great relief to Senior Citizens who may have to shell out a higher premium. This limit was Rs 20,000 earlier.
– Deduction towards medical treatment for senior citizens suffering from specified diseases raised from Rs 60,000 to Rs 80,000. If actual expenses incurred for treatment are lower, such lower amount shall be allowed as a deduction.
: Individuals who are more than 80 years old shall be allowed a deduction for medical expenses of up to Rs 30,000 from their total income.
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Govt & Non-Govt employees Salary Structure
– when you pay health insurance premium for self or spouse or children (allowed for dependent children) you can now claim a deduction of Rs 25,000 instead of Rs 15,000 allowed earlier. This increase is a great encouragement to tax payers to insure their health if they haven’t already.
– In order to provide tax benefit to those who are differently abled or those caring for dependents who may be differently abled, the FM increased the deduction – – where disability is 40% or more but less than 80% the fixed deduction. The deduction earlier allowed was Rs 50,000 which is now raised to Rs 75,000. And in case of more than 80% disability deduction allowed was Rs 1,00,000 which is now raised to Rs 1,25,000.
Total exemption that will be allowed on transport allowance is now Rs 19,200 annually instead of Rs 9,600 earlier. This limit has been revised after several years and will be a welcome relief for low income earners.
– The FM announced that tax free infrastructure bonds shall be announced to support the government’s plan for investing more money into roads and railways.
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Salary & Deduction Sheet of Master of Form 16
– Under this scheme a minimum amount of Rs 1,000 has to be deposited each year for the girl child account. A maximum Rs 1,50,000 can be invested in each financial year. The amount deposited in this account shall be eligible for deduction . The FM announced that interest payments shall be fully exempt from tax.
The FM emphasized the government is committed to ensuring pension for the common man and towards this effort they enhanced the deduction under section 80CCD by Rs 50,000 for contribution to pension funds.