BY CA Sunil Kumar Das

In its first complete Budget 2015, the Finance Minister Arun Jaitley has announced few such direct tax proposals, without much expected benefit to either limited income group / individual or on cooperates.

There has been no change in individual slab/tax rate. Deductions u/s 80D raised from existing Rs 15,000 to Rs 25,000, for senior citizen to Rs 30,000. Transport allowance raised from present Rs 800 to Rs 1,600 (for salaried persons].

Deduction limit of Rs 60,000/ on expenditure on account of specific diseases is enhanced to Rs 80,000 (U/S 80DDB). Deduction U/S 80DD/80U for differently abled person is increased from Rs 50000 to Rs 75,000 and for severe disability limit raised from Rs1 lacs to Rs 1.25 lacs.

Investment in Sukanya Samriddhi scheme is eligible for deduction under section 80C of the IT Act.

Additional deductions of Rs 50,000/pa will be available for contribution to pension schemes. There will b a levy of surcharge of 12% on persons having income exceeding Rs 1 crore.

To put it simply, an individual has the tax free income of Rs 4,44,200/, if all deductions are availed as follows.

its maiden complete Budget 2015, the Finance Minister Arun Jaitley has announced few such direct tax proposals, without much expected benefit to either limited income group / individual or on cooperates.

There has been no change in individual slab/tax rate. Deductions u/s 80D raised from existing Rs 15,000 to Rs 25,000, for senior citizen to Rs30,000. Transport allowance raised from present Rs 800 to Rs 1,600 (for salaried persons].

Deduction limit of Rs 60,000/ on expenditure on      account of specific diseases is enhanced to Rs 80,000 (U/S 80DDB). Deduction U/S 80DD/80U for differently abled  person is increased from Rs 50000 to Rs 75,000 and for  severe disability limit raised from Rs1 lacs to Rs 1.25 lacs.

Investment in Sukanya samriddhi scheme is eligible for deduction under section 80C of the IT Act.

Aditional deductions of Rs 50,000/pa will be available for contribution to pension schemes. There will b a levy of surcharge of 12% on persons having income exceeding Rs 1 crore.

To put it simply, an individual has the tax free income of Rs 4,44,200/, if all deductions are availed as follows.

i. Deduction u/s 80C Rs 1,50,000
ii. Deduction u/s 80CCD Rs 50,000
iii. Deduction on account
of interest on housing loan Rs 2,00,000
iv. Deduction u/s 80C
(Health insurance premium) Rs 25,000
v. Exemption of transport allowance
@ Rs 1,600 X 12months) Rs 19,200

TOTAL Rs 4,44,200