Good News For Salaried Class

Union Budget 2014: Know how much will you actually save after new tax benefits -Dainik Bhaskar

New Delhi: Presenting the Union Budget 2014 today, Finance Minister Arun Jaitley announced a series of changes and schemes. Strictly talking about the tax structure, not many reforms were noticed.

Though status quo has been maintained in the income tax rate in the country, the personal income tax exemption limit was raised from Rs. 2 lakh to Rs. 2.50 lakh, the earlier limit.

80c exemption limit

In a bid to boost household savings, Finance Minister raised the 80C exemption limit to Rs. 1.5 lakh from earlierRs. 1 lakh. In the time, when common man of the country is burdened by double digit retail inflation rate, this exclusion comes as a boon. Most importantly, the salaried class will be benefited the most.

Currently, people get exemptions under Sections 80C, 80CC and 80CCC of the Income-Tax Act. Investments in tax saving instruments such as the public provident fund, national savings scheme, unit-linked insurance plans and equity-linked savings schemes.

Senior citizens benefitted

Senior citizens received a special gift from the side of the Finance Minister. The exemption limit has been increased to Rs. 3 lakh for senior citizens. Earlier it was Rs. 2.5 lakh.
3 percent remains the direct tax rate (education cess) for everyone including corporates and individual tax payers.

PPF scheme
The PPF scheme has been hiked from the existing Rs. 1 lakh rupees to Rs. 1.5 lakh rupees per annum.

Housing loan

For aspiring to take home loans, the housing loan interest exemption has been increased to Rs. 2 lakh fromRs. 1.5 lakh.