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.
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