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. All are deduction other than U/s 80C.
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 100 employees Form 16 Part A&B as per New Finance Budget 2015-16]
Let’s see What’s in Budget 2015 for Salaried Class
1. No Hike in basic exemption limit
The tax slab will remain same as the previous Financial Year 2014-15, 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.
2. Section 80C ceiling limit remains Rs.1.50 lakhs per annum
With the inclusion of Sukanya Samriddhi Yojana, 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.
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, and Rs.30,000 for senior citizens.
4. Additional Tax-Savings under Section Section 80U:-
In view of the steep rise in the cost of the medical care, Government has increased deduction limit under section 80U Max Rs. 75,000/- for general, and Rs. 1,25,000/- for Sr.Citizen.
Section 80DDB :- Max Rs.80,000/- i.e. medical expense of disabled individual and dependent on Individual. for very senior citizens (aged 80 years or more) under section 80DDB.
5. Transport Allowance Doubled U/s 10
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 for below 80% and Rs. 3200/- P.M. for above 80% Phy.disable persons.
7. National Pension Scheme u/s 80CCD increased by Rs.50,000
Investments towards National Pension Scheme has got some additional tax Deduction limit of investment towards pension plans, annuity plans and new pension scheme is hiked to Rs.1.50 lakhs