Budget 2014: It takes a tax break to make the middle class smile3 min read . Updated: 10 Jul 2014, 07:25 PM IST
A return to the FRBM target of 3% fiscal deficit and zero revenue deficit by 2016 will reduce the need for cheap household money
As a tax payer you’ve gained a bit this budget. If you are under 60 years of age, the first ₹ 2.5 lakh of income is now tax exempt. If between 60 and 80, ₹ 3 lakh is tax exempt and for those over 80, your first ₹ 5 lakh continues to be tax exempt. The surcharge on the ₹ 1 crore-plus income earners remains as do the tax slabs, cess and surcharge. The section 80C limit is now up by ₹ 50,000 to ₹ 1.5 lakh, and you can now invest up to ₹ 1.5 lakh a year in Public Provident Fund (PPF), up from ₹ 1 lakh. Your home loans just got sweeter with another ₹ 50,000 deduction allowed on the interest, which takes the deductible amount to ₹ 2 lakh. If you earn more than ₹ 10 lakh a year, you are richer by just over ₹ 35,000 a year due to these changes.
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