In the
Finance Budget 2015-16, without doing any changes in Income Tax Slabs
and there are no changes in Section 80C limits for the salaried. But limit of some
Tax Section has raised which is given below :-
For
Senior Citizens
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.
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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.
Higher
Income Tax Deductions for the differently abled – In order to provide tax benefit to those who
are differently abled or those caring for dependents who may be differently
abled, the FM increased the deduction – Under Section 80DD and 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.
Tax
free Infrastructure Bonds – The FM announced that tax free
infrastructure bonds shall be announced to support the government’s plan for
investing more money into roads and railways.
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100% deduction under Section 80G
for contributions to Swaach Bharat Abhiyaan and Clean Ganga
Fund
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.
How much tax will you actually
save on your income? Download our app to calculate the tax you will pay in financial
year 2015-16. You can also check the status of your income tax refund status here.
