Budget 2014-2015: Taxpayers have some reason to smile…
The following is the gist of most important announcements presented by the Finance Minister Mr. Arun Jaitley in his maiden Budget speech on Thursday 10th Jul 2014:
# Tax Rate is not changed compared to last budget 2013-14 (i.e., 0% as minimum, 10%,20% and 30% as maximum slab rate is maintained)
# Personal Income Tax exemption limit is increased by Rs 50,000/- (from Rs. 2 Lacs to 2.5 Lacs) for individual taxpayers below the age of 60 years irrespective of men or women. The individual tax exemption limit of Rs 2.5 lac has no gender segregation.
# Personal Income Tax exemption limit is raised by Rs 50,000/- (from Rs. 2.5 Lacs to 3 Lacs) also for individual senior citizens in the range of 60 to 80 years of age.
# As a big push towards to small savings among people, Investment limit under Section 80C instruments has been increased from Rs 1 Lac to Rs 1.5 Lacs which will encourage long term savings among people. This will result in a savings of Rs 5,000 per year for individuals.
# Public Provident Fund (PPF) deposit limit has also been increased to Rs 1.5 Lacs per annum from Rs. 1 Lac per annum.
# To revitalize investments into realty sector, the cap on interest on home loan with respect to self occupied house property has been raised from Rs 1.5 Lacs to Rs 2 Lacs.
# Proposal to reintroduce Kisan Vikas Patra (KVP) which was discontinued from Dec 2011 was one of the major encouragement towards long term saving habits;
# A special National Savings Certificate scheme for parents with the objective of saving for the purpose of education and marriage of the girl child was announced;
# Tax benefits to continue in the Rajiv Gandhi Equity Savings Scheme (RGESS) under section 80CCG which can be claimed as tax benefit for a period of three years;
# Skill India, a national multi skill school program to be launched to develop, train the skills of the youth towards employability and entrepreneur skills;
The below table will compare the tax slab for Individual Tax Payers with previous budget of 2013-14 and current budget of 2014-15:
The following is the gist of most important announcements presented by the Finance Minister Mr. Arun Jaitley in his maiden Budget speech on Thursday 10th Jul 2014:
# Tax Rate is not changed compared to last budget 2013-14 (i.e., 0% as minimum, 10%,20% and 30% as maximum slab rate is maintained)
# Personal Income Tax exemption limit is increased by Rs 50,000/- (from Rs. 2 Lacs to 2.5 Lacs) for individual taxpayers below the age of 60 years irrespective of men or women. The individual tax exemption limit of Rs 2.5 lac has no gender segregation.
# Personal Income Tax exemption limit is raised by Rs 50,000/- (from Rs. 2.5 Lacs to 3 Lacs) also for individual senior citizens in the range of 60 to 80 years of age.
# As a big push towards to small savings among people, Investment limit under Section 80C instruments has been increased from Rs 1 Lac to Rs 1.5 Lacs which will encourage long term savings among people. This will result in a savings of Rs 5,000 per year for individuals.
# Public Provident Fund (PPF) deposit limit has also been increased to Rs 1.5 Lacs per annum from Rs. 1 Lac per annum.
# To revitalize investments into realty sector, the cap on interest on home loan with respect to self occupied house property has been raised from Rs 1.5 Lacs to Rs 2 Lacs.
# Proposal to reintroduce Kisan Vikas Patra (KVP) which was discontinued from Dec 2011 was one of the major encouragement towards long term saving habits;
# A special National Savings Certificate scheme for parents with the objective of saving for the purpose of education and marriage of the girl child was announced;
# Tax benefits to continue in the Rajiv Gandhi Equity Savings Scheme (RGESS) under section 80CCG which can be claimed as tax benefit for a period of three years;
# Skill India, a national multi skill school program to be launched to develop, train the skills of the youth towards employability and entrepreneur skills;
The below table will compare the tax slab for Individual Tax Payers with previous budget of 2013-14 and current budget of 2014-15:
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| Individual Income Tax Slab 2014-2015 comparison with 2013-2014 |
