Benefit from the Income Tax sops announced by the Government..?
In the 2014-15 Budget that was presented recently, it was announced that the income tax exemption slab will be being raised from Rs. 2 lakhs per annum to Rs. 2.5 lakhs.
On July 10, during the parliamentary session, while presenting the budget for the year 2014-15, Finance Minister Arun Jaitley announced that the non-taxable incomeslab for individual tax payers has been raised from Rs. 2 lakhs to Rs. 2.5 lakhs. Also, the maximum tax exemption of Rs. 1 lakh Under Section 80C has been raised to Rs. 1.5 lakh. Interest deductions on home loan have been increased from Rs. 1.5 lakhs to Rs. 2 lakhs.
Let us now make approximate calculations about the kinds of benefits that taxpayers stand to get from these changes:
Raising the non-taxable income limit from Rs. 2 lakhs to Rs. 2.5 lakhs gives a maximum tax savings of Rs. 5600 additionally.
Since the maximum tax exemption under Section 80C has been raised to Rs. 1.5 lakhs, the tax payer gets to save Rs. 17,000 under certain exemption categories.
Since the maximum exemption under home loan deduction has been raised from Rs. 1.5 lakhs to Rs. 2 lakhs, the taxpayer saves another 17,000.