The Budget 2016 applicable to the Salaried Persons in Income Tax
The Budget 2016 having high expectations was released by Mr. Arun Jaitley, Finance Minister of the new Modi government on the 28th of February 2016. Many people whom I met post budget had the same view that it did not meet their expectations. However, I feel that mainly this reaction was because the slab rates were not changed or to be precise the slab rates were not Increased. Face the fact, Slab rate for F.Y. 2016-17 cannot be increased further, there is no room for it, as it will not only decrease the government's revenue but will also hamper the economy in a very bad way. the best way was to channelize the fund from governments revenue to some government and Economy helping funds, investments, etc; which Mr. Jaietly knew very well and hence he introduced more Deductions and also raised Limits of the deductions. Just wait and have trust on Government the 4th and 5th year of the Modi Government will be a Golden Era for India's Economy... I can Speak on this more but for now, let's bring our mind horses back on the Topic "TDS or Taxation on Income From Salaries for F.Y. 2016-17".
Download Automatic Arrears Relief Calculator with Form10E from the F.Y.2000-01 to F.Y.2016-17
Keeping apart the main Topic i.e. "TDS on Salary". Let us witness important points, in Short, Common and Nontechnical language related to the Calculation Income from Salaries for TDS and Taxation Purpose:
1. Medi-claim Premium (Premium on Health Insurance) Section 80D :
The deduction under this section was available to the assessee for the Insurance premium paid on the health insurance but it was subjected to following Limits (Earlier and Now Revised): Max Rs. 25,000/- and for Senior Citizen Rs.30,000/- as per Budget 2015
2. Deduction for Medical Expenses on treatment of Specified Diseases (Section 80DDB):
Deduction u/s. 80DDB has been Raised from Rs. 60,000/- to Rs. 80,000/- only for Senior Citizens, please note that here is no change in limits for Non-Senior Citizens.
3. Deduction for Persons differently abled (Section 80DD and 80U):
Deductions under section 80DD and 80U are increased as follows: Up to 40% to 80% Rs. 75,000/- and above 80 % Rs. 1.25,000/- as per Budget 2015 for F.Y.2015-16
4. Transport Allowance Exempt u/s. 10:
Exemption for Transport allowance is allowable as the amount received or Fixed amount as below: For General Max Rs. 1600/- P.M. and Phy.Disable Max Rs. 3200/- P.M. for F.Y. 2015-16
5. Sukanya Samridhi Account (For Girl child) under Section 80C :
This is an another milestone in the Indian Taxation History. A Historic Scheme which can only exist in India and no other country for the betterment of a Girl Child's Future. This is a must have investment in your Portfolio of investments if you have a girl child below the age of 10 years, however one year grace period is allowed as this is a new scheme; So a Girl Child who is Born between 2.12.2003 & 1.12.2004 can also open an account under this scheme up to 1.12.2015.
4. Tax Rebate U/s 87A has raised from Rs.2,000/- to 5,000/-
As per the Finance Budget 2016 has raised the Tax Rebate can get Rs. 5,000/- who's taxable Income less than 5 lakh.
