Income Tax Changes Can Save You up to Rs. 36,000

NDTV, NEW DELHI | 10 July 2014 16:16 IST

Finance Minister Arun Jaitley's Budget announcements will lead to big savings for income tax payers.

Mr Jaitley on Thursday hiked the basic exemption limit on income taxes from Rs. 2 lakh to Rs. 2.50 lakh.

Mr Jaitley also hiked the cap on long-term investments under Section 80C of the Income Tax Act from Rs. 1 lakh to Rs. 1.50 lakh. The Finance Minister also raised the tax-free cap on interest paid on housing loan from Rs. 1.5 lakh to Rs. 2 lakh.

Together, the three announcements will lead to a combined savings of Rs. 36,050 for individuals in the highest tax bracket (taxable income above Rs. 10 lakh), according to tax consultant BMR Advisors.

Individuals with taxable income between Rs. 5 and 10 lakh will save Rs.25,750, BMR Advisors said. Those with taxable income between Rs. 2 and Rs. 5 lakh will save around Rs. 15,450.

In another major announcement, Mr Jaitley enhanced the Public Provident Fund (PPF) ceiling from current Rs. 1 lakh to Rs. 1.5 lakh in a financial year. PPF is one of the most popular tax-saving schemes. 

The PPF corpus is tax-free at all three stages. The investment is eligible for tax deduction under Section 80C. The interest earned is also tax-free, and so are withdrawals.

Mr Jaitley said the government will forego around Rs. 22,000 crore on account of these changes.

Original Report


goanews.com is now on Telegram & also Youtube. Kindly subscribe for free & remain updated.


Drop a comment

Enter The Code Displayed hereRefresh Image


Previous Comments

Instead Of So Many Cards, Why Not Make Only 1 Card. Merge All Cards With One Card. It Can Be Call Goa Card. This Card Should Be Use For Any Work In Goa. One Card Is Better Than So Many Unnecessary Cards Like Aadhar, Pan, Ration Cards, Etc. One Goa Card For Tax Payment, Bill Payment And To Avail All Government Benefits. GOA CARD.

- Jose Rod, Goa | 14 th July 2014 16:07

 

Latest News

Budget

Desktop Site