Indian Finance Minister has presented the Budget for 2015-16. All the Employees expected a hike in Income Tax Slabs for AY 2015-16 (applicable on income earned during 01.04.2014 to 31.03.2015) , but Fin Min Arun Jaitley has NOT listened the Employees heart beat and continued the Old Tax Slabs as was there in 2014-15 making all the Employees in disappointment. Though Finance Minister Arun Jaitley proposed no changes in personal income-tax rates for 2015-16 but extended benefits to middle-class by increasing the limit of deduction on health insurance premium from Rs 15,000 to Rs 20,000, while presenting the Budget 2015-16. Here are the Key Points of Budget and Important Features on Tax Changes / Slabs for 2015-16.
The Important Points on TAX Deductions for Employees are as folloows:
Tax Proposals as per Budget 2015-16 and Key Points of Indian Budget 2015-16
- No change in rate of personal income tax.
- PAN being made mandatory for any purchase or sale exceeding Rupees 1 lakh
- Increase in the limit of deduction in respect of health insurance premium from Rs 15,000 to Rs 25,000.
- For senior citizens the limit will stand increased to Rs 30,000 from the existing Rs 20,000.
- For very senior citizens of the age of 80 years or more, who are not covered by health insurance, deduction of Rs.30,000 towards expenditure incurred on the treatment will allowed.
- The deduction limit of Rs.60,000 towards expenditure on account of specified diseases of serious nature is proposed to be enhanced to Rs.80,000 in case of very senior citizens.
- Additional deduction of Rs.25,000 will be allowed for differently abled persons under Section 80DD and Section 80U of the Income-tax Act.
- The limit on deduction on account of contribution to a Pension Fund and the New Pension Scheme is proposed to be increased from Rs.1 lakh to Rs.1.5 lakh.
- To provide social safety net and the facility of pension to individuals and additional deduction of Rs.50,000 is proposed to be provided for contribution to the New Pension Scheme under Section 80 CCD. This will enable India to become a pensioned society instead of a pensionless society.
- Investments in Sukanya Samriddhi Scheme is already eligible for deduction under Section 80C. All payments to the beneficiaries including interest payment on deposit will also be fully exempt.