Download Automated Master of Form 16 Part A &B for Financial Year 2015-16 and Assessment Year 2016-17 [ This Excel based Software can prepare at a time 50 employees Form 16 Part A&B as per the Finance Budget 2015 ]
With
no hike in the basic exemption limit of Rs.2.50 lakhs and no rise in
threshold/ceiling limit of section 80C, budget did not give many reasons to
grin to the salaried class tax payers aka common man. The expectations of common man from budget
2015 were high but most of them
remained unattained.
Although there are couple of social scheme which
includes low-cost pension scheme and low-premium insurance scheme such as PM Suraksha Bima Yojana, Atal Pension Yojana and PM
Jeevan Jyothi Bima Yojana. All these schemes reflect that Government has tried
to support the lower class by making easy access to insurance and pension
plans.
Let’s see What’s in Budget 2015 for Salaried Class
1. No Hike in basic exemption limit
The first disappointment comes in the form of no
increase in the basic exemption limit. This means the tax slab will remain same
for the financial year 2015-16 i.e. assessment year 2106-17 but the surcharge
rate of 10% is increased to 12% for the tax payers having income above Rs.1
crore. This increment in the surcharge rate is made to compensate the income
from the abolished wealth tax.
Tax-Slabs for financial year 2015-16 i.e. assessment year 2106-17
2. Section 80C ceiling limit remains Rs.1.50 lakhs per annum
With the inclusion of sukanya
samriddhi yojana and equity oriented pension funds, there
was an inevitable need of expanding the threshold limit of section 80C but that
did not happen. Section 80C remains intact in budget 2015.
Recommended Read: How to Maximize Tax Savings on Salary Income?
3. Rise in the Health Insurance Premium paid u/s 80D
To spread the health care awareness among individual
tax payers, section 80D has been amended by increasing the deduction limit for
the premium paid for health insurance to Rs.25,000 for non-senior individuals
(earlier Rs.15,000) and Rs.30,000 for senior citizens (earlier Rs.20,000).
4. Additional Tax-Savings under Section 80DD, Section 80DDB and Section 80U
In view of the steep rise in the cost of the medical
care, Government has increased deduction limit under section 80U and section
80DD by Rs.25,000 i.e. medical expense of disabled individual and dependent on
Individual, from existing Rs.50,000 to Rs.75,000 and in case of severe
disability the addition amounts to Rs.50,000 i.e. from existing Rs.1,00,000 to
Rs.1,50,000.
Further, Government has also given additional tax sop
of Rs.20,000 (from Rs.60,000 to Rs.80,000) on the medical treatment of some
specific diseases such as cancer, AIDS etc. for very senior citizens (aged 80
years or more) under section 80DDB.
5. Transport Allowance Doubled
The transport allowance cost has witnessed some sharp
increase and to cope up with that Government has doubled the transport
allowance from existing Rs.800 per month to Rs.1,600 per month which totaled to
Rs.19,200 per year.
6. Home Loan Interest Deductions remains Intact
The limit of home loan interest deduction u/s 24 was
hiked in the interim budget last year to Rs.2 lakhs. But with the rising cost
of property, there was a need of increasing this deduction limit to Rs.3 lakhs
which was not met. So the ceiling limit of home loan interest for the self-occupied
property remains intact at Rs.2 lakhs per year under section 24(b).
7. National Pension Scheme u/s 80CCD increased by Rs.50,000
Investments towards National Pension Scheme has got
some additional tax sops of Rs.50,000 over and above the Section 80C ceiling
limit of Rs.1.50 lakhs.
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