Finance Minister Arun Jaitley’s maiden budget of 2014-15 is cheered by salaried class tax payers. The individual tax payer’s personal tax exemption limit is raised to Rs. 2.5 Lakhs from the current Rs. 2 Lakhs. For senior citizens above 60 years of age, tax exemption limit has been raised to Rs 3 Lakhs from Rs.2.5 Lakhs.
In a further relief to the depositors, the minister announced that the PPF (Public Provident Fund) deposit ceiling will be raised to Rs.1.5 Lakh from the existing Rs.1 Lakh.
The finance minister said he proposed the tax exemption limit for individuals below 60 years at Rs.250,000, subject to parliament's approval, and Rs.300,000 for senior citizens. Deductions allowed under various heads such as investments in insurance, pension and house rent are also proposed to be raised by Rs.50,000 to Rs.150,000.
Tax announcements by Finance Minister
No change in direct tax rates
To increase personal I-T limit to Rs 2.5 lk
Raises tax exemption limit to Rs 3lk vs Rs 2.5lk for senior citizens
No change in tax laws for Hindu Undivided Families
No changes in tax rates, but relief to small tax payers and pensioners
No super rich tax. Personal Tax exemption limit raised to Rs 2.5 lakh. Rs 3,00,000 for senior citizens.
Deduction under 80CC increased from Rs 1 lakh to Rs 1.5 lakh
Housing loan interest exemption increased to Rs.2 lakh from Rs.1.5 lakh
10 year tax holiday for power companies who start production and distribution on March 31.
In a further relief to the depositors, the minister announced that the PPF (Public Provident Fund) deposit ceiling will be raised to Rs.1.5 Lakh from the existing Rs.1 Lakh.
The finance minister said he proposed the tax exemption limit for individuals below 60 years at Rs.250,000, subject to parliament's approval, and Rs.300,000 for senior citizens. Deductions allowed under various heads such as investments in insurance, pension and house rent are also proposed to be raised by Rs.50,000 to Rs.150,000.
Tax announcements by Finance Minister
No change in direct tax rates
To increase personal I-T limit to Rs 2.5 lk
Raises tax exemption limit to Rs 3lk vs Rs 2.5lk for senior citizens
No change in tax laws for Hindu Undivided Families
No changes in tax rates, but relief to small tax payers and pensioners
No super rich tax. Personal Tax exemption limit raised to Rs 2.5 lakh. Rs 3,00,000 for senior citizens.
Deduction under 80CC increased from Rs 1 lakh to Rs 1.5 lakh
Housing loan interest exemption increased to Rs.2 lakh from Rs.1.5 lakh
10 year tax holiday for power companies who start production and distribution on March 31.