Tax proposals in Budget 2015-16 which benefits middle class tax payers. The proposals in this regard are as follows :
Ø Increase in the limit of deduction in respect of health insurance premium from Rs. 15,000 to Rs. 25,000.
o For senior citizens the limit will stand increased to Rs. 30,000 from the existing Rs. 20,000.
o 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 their treatment will be allowed.
Ø 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.
Ø Additional deduction of Rs. 25,000 will be allowed for differently abled persons under Section 80DD and Section 80U of the Income-tax Act.
Ø 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.
Ø To provide social safety net and the facility of pension to individuals, an additional deduction of Rs. 50,000 is proposed to be provided for contribution to the New Pension Scheme under Section 80CCD. This will enable India to become a pensioned society instead of a pensionless society.
Ø 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.
Ø Transport allowance exemption is being increased from Rs. 800 to Rs. 1,600 per month.
Ø For the benefit of senior citizens, service tax exemption will be provided on Varishta Bima Yojana.
Details of tax deductions proposed are as follows:
|·||Deduction u/s 80C||Rs 1,50,000|
|·||Deduction u/s 80CCD||Rs 50,000|
|·||Deduction on account of interest on house property loan (Self occupied property)||Rs 2,00,000|
|·||Deduction u/s 80D on health insurance premium||Rs 25,000|
|·||Exemption of transport allowance||Rs 19,200|
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018