Budget 2015: Will it boost public savings?
Jaitley didn’t tinker with the tax regime for individual taxpayers either by way of raising or lowering tax sops in his budget
New Delhi: Finance minister Arun Jaitley didn’t tinker with the tax regime for individual taxpayers either by way of raising or lowering tax sops in his budget for the next fiscal year unveiled on Saturday.
Benefits under Section 80C of the Income-tax Act remained unchanged with one exception. Contributors to the National Pension Scheme (NPS) will be allowed to deduct ₹ 50,000 more from their taxable income if they are contributing ₹ 1.5 lakh a year to scheme.
“It is proposed to increase the limit of deduction u/s 80CCD of the Income-tax Act on account of contribution by the employee to National Pension Scheme (NPS) from ₹ 1 lakh to ₹ 1.5 lakh. It is also proposed to provide a deduction of upto ₹ 50,000 over and above the limit of ₹ 1.5 lakh in respect of contributions made to NPS," the budget document said.
The budget also proposed to increase the limit of deduction u/s 80D of the Income-tax Act from ₹ 15,000 to ₹ 25,000 on health insurance premium. In case of senior citizen, it enhanced the limit from ₹ 20,000 to ₹ 30,000 for tax rebate.
The finance minister also announced an increase in the limit of deduction in case of very senior citizens u/s 80DDB of the Income-tax Act on expenditure for treatment of specified diseases from ₹ 60,000 to ₹ 80,000.
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