What is the main changes in Income Tax in the Budget 2015-16 for the Salaried Person,with Advance Tax Calculator for FY 2015-16

To start with, let the  explain what
exactly has changed in terms of taxation from the year (i.e.AY 2016-17) As per
Budget 2015:

  1. Tax slabs have not  changed
  2. investment limit under sec.
    80C also same as previous year
All changes this budget have been beneficial for the tax payer. If you are
already aware of all the provision for saving income tax, you can skip the
remaining part and download Advance income taxcalculator for FY 2015-16 to compute your income tax liability (or TDS) basis your
salary or business income. Others, do read on to know all the different tactics
you can use to save on income tax.

Income Tax Slabs for the Financial Year 2015-16

Income tax slabs have been changed this year. Standard deduction limit has
been raised to Rs. 2,50,000 for both Male and Female assesses.
1) In Case of General Assesses (Both Male & Female):
          Income Bracket
        Rate
   0 to Rs. 2,50,000
      0   %
   Rs. 2,50,001 to Rs. 5,00,000
    10 %
   Rs. 5,00,001 to Rs. 10,00,000
    20 %
   Above Rs. 10,00,000
    30 %
2) In Case of Senior Citizens (Age above 60 years but below 80
years):
           Income Bracket
    Rate
    0 to Rs. 3,00,000
     0   %
    Rs. 3,00,001 to Rs. 5,00,000
    10 %
    Rs. 5,00,001 to Rs. 10,00,000
    20 %
    Above Rs. 10,00,000
    30 %
3) In Case of Very Senior Citizens (Age 80 years and above):
              Income Bracket
     Rate
    0 to Rs. 5,00,000
     0   %
    Rs. 5,00,001 to Rs. 10,00,000
    20 %
    Above Rs. 10,00,000
    30 %

Income Tax Exemptions: 

1) Section 80 C Limit  – Unchanged this year (Max  Rs. 1,50,000)

  • Deduction on premium paid
    for a life insurance policy, taken after 1 April 2012, will be allowed
    only if yearly premium is less than 10% of sum assured.  If its more
    than 10% then it will be not eligible for deduction u/sec. 80C
  • ELSS (Mutual Fund)
  • PPF (upto Rs. 1,50,000)
  • EPF
  • FD for 5 years
  • Pension Plans
  • NSC
  • Sukanya Samriddhi Account (
    Minor Girl Child Scheme) Max Rs. 1.5 Lakh
  • Post Office SB
  • Infrastructure Bonds
  • Expenditure on Children
    Education (For upto 2 children only for full time education)
  • Tuition fees Maximum allowed
    is Rs. 1,50,000
  • Housing loan principal
  • Deferred Annuity
  • Approved Super Annotation
    Fund
  • 80CC Raised Up to Rs.
    1,50,000 [ Pension Fund ]

2) Section 80CCD – Changed this year

Deduction under this section can be claimed only if the contribution to your
NPS account is made by your employer and the
deduction is limited to a maximum of 10% of your basic salary. Returns on
NPS are tax free, but withdrawal is still taxable. The deduction under sec
80CCD is over and above the deduction available under sec 80C Max Rs.1.5 Lakh

3) Section 80 D –Changed this year

Deduction under section 80D
  • Deduction of Rs. 25000/- is
    allowed if the same is paid as premium for Medical Insurance taken for
    self / dependents or towards preventive health check-up (max Rs. 5000). In
    case any of self / dependents is a senior citizen, the deduction allowed
    is Rs. 30000/-

4) Section 80DD – Unchanged this year

Deduction under section 80DD
  • Exemption given for
    expenditure made for a disabled dependant towards Medical
    Treatment/Training/Rehabilitation. It also includes the LIC/Insurance
    premium paid towards maintenance of such dependant.
  • Maximum deduction allowed is Rs.
    50,000/-
     in case of normal disability and Rs. 1
    Lakh
     in case of severe disability.

5) Section 80DDB – Unchanged this year

Deduction under section 80DDB
  • Exemption given for
    expenditure incurred on specified disease or ailments such as cancer/aids.
  • Maximum deduction allowed
    is Rs. 40,000/-. In case of Senior Citizens, maximum
    deduction allowed is Rs. 60,000/-
List of ailments covered:
(i) Neurological Diseases where the disability level has been
certified to be of 40% and above,
  1. Dementia ;
  2. Dystonia Musculorum
    Deformans ;
  3. Motor Neuron Disease ;
  4. Ataxia ;
  5. Chorea ;
  6. Hemiballismus ;
  7. Aphasia ;
  8. Parkinsons Disease ;
(ii) Malignant Cancers ;
(iii) Full Blown Acquired Immuno-Deficiency Syndrome
(AIDS) ;
(iv) Chronic Renal failure ;
(v) Hematological disorders :
  1. Hemophilia ;
  2. Thalassaemia.

6) Section 80E – Unchanged this year

Deduction is allowed for repayment of interest component
of Higher Education loan. All education after Class 12 is allowed, either
vocational or Fulltime. But should be from a school/institute/university
recognized by the government.

7) Section 80G – Unchanged this year

  • Contribution to exempt
    charities – 25/50/75/100% depending on the charity and as per approval
  • 100% exemption on
    donation to political parties

8) Section 80U – Changed this year

  • Deduction upto Rs.
    75,000/-
     is allowed in case of Permanent Disability.
  • In case of Permanent
    Disability exceeding 80%, maximum deduction allowed is Rs.
    1,00,000/-
    .

9) Section 24B & Section 80EE  – Unchanged this
year

  • Housing loan interest.
    Maximum allowed limit raised to – Rs. 2,00,000 (for loans
    taken after 1 April 1999. For loans before that Maximum Investment Limit
    was 30,000).
  • Additional deduction of Rs.
    1 lac will be applicable to persons taking 
    first home loan of up to Rs. 25 lacs for property worth
    upto 
    Rs. 40 lac.
    For such persons, the total deduction will be Rs. 2.5 lacs (Rs. 1.5 lac
    available under section 24(1)(vi) and Rs. 1 lac available under this new
    section 80EE).

    10) Superannuation Unchanged this year

Any contribution made by a company to superannuation fund upto Rs. 1,00,000
tax free in the hands of the employee.

11) Conveyance/Transport
Allowance – Changed this year

Any Conveyance / Transport Allowance given to an employee is tax free upto
Rs. 1600 /- P.M.

12) Medical Allowance – Unchanged this year

Any Medical Allowance given to an employee is tax free upto Rs. 15,000 /-
(Supporting Bills required).

13) HRA – Unchanged this year

Any House Rent Allowance given to an employee is tax free upto the minimum
value of the following conditions (subject to – when an employee can produce
rent paid receipts from landlord for the period and if the employee has not
availed of tax exemptions for home loan interest / principal repayment):
  1. 50% of Annual Basic (40% of
    Annual Basic in case of non-metros)
  2. Actual HRA received
  3. Rent Paid – (10% of Annual
    Basic)

14) Professional Tax – Unchanged this year

Any Professional Tax deducted from an employee’s salary can be reduced from
the annual salary income to arrive at taxable salary.

15) Provident Fund – Unchanged this year

Provident Fund contributions (under section 80 C and subject to an overall
investment limit of Rs. 1,50,000 ) deducted from an employee’s salary are tax
exempt.

16)Sukanya Samriddhi Account for Monor Girl Child under 12 years – Newly Include this deduction U/s 80C, Max Limit Rs. 1,50,000/-

As per the Finance Budget 2015 newly include in the Section 80C in the name Sukanya Samriddhi Account which only availed below 12 years Girl Child.

17) Section 80TTA – Savings Bank
Interest – Unchanged this year

No tax will be charged on interest earned on balance in savings bank account
subject to a maximum of Rs. 10,000 per year.

18) Section 87 A [Tax Rebate
Rs.2,000/-]  – Unchanged this year

Download Advance income taxcalculator for FY 2015-16

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