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The FM has extended tax concessions mostly for senior
citizens in this Budget without doing any changes in Income Tax Slabs and there
are no changes in Section 80C limits for the salaried. The FM also went all out
to fight against black money announcing a string of stringent tax measures for
concealment of foreign income or non-disclosure of foreign assets in Income Tax
Returns.
Section 80D limit raised to Rs
30,000 – Deductions under section 80D are allowed on health
insurance premium paid. In case of premium paid for senior citizens the
deduction allowed shall be up to Rs 30,000. This is a great relief to Senior
Citizens who may have to shell out a higher premium. This limit was Rs 20,000
earlier.
Under Section 80DDB – Deduction towards medical treatment for senior
citizens suffering from specified diseases raised from Rs 60,000 to Rs 80,000.
If actual expenses incurred for treatment are lower, such lower amount shall be
allowed as a deduction.
Deduction for Medical Expenses
for Super Senior Citizens up to Rs 30,000: Individuals who are more than 80 years old shall be allowed a
deduction for medical expenses of up to Rs 30,000 from their total income.
Service Tax Exemption on
premium paid by Senior Citizens for Varishtha Bima Yojana – Senior citizens shall not be required to pay for
service tax component on insurance premium of this bima.
For those less than 60 years old
Increased deduction under
section 80D to Rs 25,000 from Rs 15,000 – when you pay health insurance premium for self or
spouse or children (allowed for dependent children) you can now claim a
deduction of Rs 25,000 instead of Rs 15,000 allowed earlier. This increase is a
great encouragement to tax payers to insure their health if they haven’t
already.
Under Section 80U – where disability is 40% or more but
less than 80% the fixed deduction. The deduction earlier allowed was Rs 50,000
which is now raised to Rs 75,000. And in case of more than 80% disability
deduction allowed was Rs 1,00,000 which is now raised to Rs 1,25,000.
Transport Allowance now Rs 1600
pm up from Rs 800 pm – Total exemption that will be allowed on transport
allowance is now Rs 19,200 annually instead of Rs 9,600 earlier. This limit has
been revised after several years and will be a welcome relief for low income
earners.
Interest earned on Sukanya
Samridhi Account to be fully tax free – Under this scheme a minimum amount of Rs 1,000 has
to be deposited each year for the girl child account. A maximum Rs
1,50,000 can be invested in each financial year. The amount deposited in this
account shall be eligible for deduction under section 80C. The FM announced that interest payments
shall be fully exempt from tax.
Additional deduction of Rs
50,000 towards contributions to Pension Funds – The FM emphasized the government is committed to ensuring pension for
the common man and towards this effort they enhanced the deduction under
section 80CCD by Rs 50,000 for contribution to pension funds.
