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Showing posts with label BENEFITS IN BUDGET 2015-16. Show all posts
Showing posts with label BENEFITS IN BUDGET 2015-16. Show all posts

Friday, 27 March 2015

No changes the income tax rates or increasing the exemption limits for individuals, Union finance minister Mr. Arun Jaitley on Saturday proposed increasing the range of tax deductible investments/spend.
Presenting the budget proposals for 2015-16 in the Lok Sabha, Mr.Jaitley said the government is proposing to rationalise various tax exemptions and incentives to reduce tax disputes and improve tax administration.
The proposals mentioned by the finance minister made clear the government's focus on enlarging the tax-exempt investments/spend.
Mr.Jaitley said the proposals would result in tax deductions to the tune of around Rs 440,000 crore.
Mr.Jaitley said in order to encourage savings and to promote health care among individual tax payers, it is proposed to increase the limit of deduction on account of health insurance premium from Rs.15,000 to Rs.25,000 - for senior citizens this limit is to be increased from Rs.20,000 to Rs.30,000.
For senior citizens above the age of 80 years - who are not eligible to avail of health insurance - deduction will be allowed for medical expenses up to Rs 30,000.
The deduction limit of Rs 60,000 on expenditure on account of specified diseases -- like cancer -- will be enhanced to Rs 80,000 in the case of senior citizens.
TheTax Section 80U have raised up to Rs. 75,000/-  for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000.
It is also  increase the limit of tax deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
According to Jaitley, investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income tax and any payment from the scheme shall not be liable to tax.
Limit on deduction on account of contribution to a pension fund and the new pension scheme is  increased from Rs 1 lakh to Rs 1.5 lakh. Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme under section 80 CCD of Income Tax Act -- increasing the exemption from Rs 1 lakh to Rs 1.5 lakh.
Mr.Jaitley also doubled the transport allowance exemption to Rs 1,600 per month.
According to him, the details of tax deductions proposed are as follows:

Deduction u/s 80C - Rs.150,000; Deduction u/s 80CCD - Rs.50,000; Deduction on account of interest on house property loan (Self-occupied property) - Rs.200,000; 
Deduction u/s 80D on health insurance premium - Rs.25,000; Exemption of transport allowance - Rs 19,200/-

Monday, 23 March 2015

 Tax Slab for the Financial Year 2015-16 & Ass Yr 2016-17

Upto Rs. 2, 50,000
Nil.
Rs. 2,50,001 to Rs. 5,00,000
10 per cent.
Rs. 5,00,001 to Rs. 10,00,000
20 per cent.
Above Rs. 10,00,000
30 per cent.
(ii)  In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,-
Upto Rs. 3,00,000
Nil.
Rs.3,00,001 to Rs. 5,00,000
10 per cent.
Rs. 5,00,001 to Rs.10,00,000
20 per cent.
Above Rs. 10,00,000
30 per cent.
(iii) in the case of every individual, being a resident in India, who is of the age of eighty years or more at anytime during the previous year,-
Upto Rs. 5,00,000
Nil.
Rs. 5,00,001 to Rs. 10,00,000
20 per cent.
Above Rs. 10,00,000
30 per cent.

Income Tax 2015-16 – Changes relevant to Salaried Employees in Budget 2015

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 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.
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 this year 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

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 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 proposed 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

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 from Rs. 800 to 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.