Finance Minister Arun Jaitley had announced incremental tax
benefits for common taxpayers in his recent Budget 2016
Here are some income tax changes that experts expect in the budget:
Income Tax Calculator for Central Govt employeesfor Financial Year 2016-17 & Assessment Year 2017-18 as per Finance Budget2016
1) The basic income tax exemption limit should be raised from Rs. 2.5 lakh for male & female below 60 years age.
2) The current
deduction limit of Rs. 2 lakh on home
loan interest paid U/s 24B during a financial year is too & Additional
Section 80EE where can get more Home Loan Interest Max Rs. 1.5 Lakh excluding
U/s 24B.
Download Income Tax Arrears Relief Calculator with Form 10E FromF.Y.2001-02 to F.Y.2016-17 (Up dated Version)
3) A separate section for deduction on the principal paid on home loan should be introduced. Home loan principal repayment deduction is currently clubbed with other options under Section 80C, which has a ceiling of Rs. 1.50 lakh.
4) Home buyers can
currently avail home loan interest deduction only after the completion of
construction of property. In case construction is not complete within 3 years,
the deduction is reduced to Rs. 30,000 per year
from Rs. 2 lakh under current norms. This needs to be changed,
given widespread construction delays.
5) The limit of
Section 80C of Rs. 1.5 lakh is raised
and linked to the Additional exemption U/s 80CCD(1B) Max. Rs. 50,000/-
income-level of tax payers as some of the compulsory contributions like
employee provident fund leave very little scope for other investments for
people falling in highest tax bracket up to Rs. 2 Lakh.
6) Medical Insurance
U/s 80D has raised the Max. limit of Rs. 25,000 per annum
& for Sr.Citizen Rs. 30,000/-
