- Income tax exemption limit has been raised from Rs 2 lakhs at present to Rs 2.5 lakhs..
- For Senior Citizens, Income tax exemption limit has been raised from Rs 2.5 lakhs to Rs 3.0 lakhs:
If your taxable income is below 2.5 Lakhs, you do not have to pay any taxes. And in case it is above Rs 2.5L, you will be saving taxes of Rs 5000 for income earned during 2014-15. Anyone above the age of 60 yrs is considered a senior citizen for taxation purposes. Therefore the tax slab for them has moved up too.
- Deductions under Section 80C limit has been raised from Rs 1 lakh to Rs 1.5 lakh.
- PPF (Public Provident Fund)- annual PPF ceiling has been enhanced from Rs 1 lakh to to Rs 1.5 lakhs:
Women can now save Rs 50,000 more towards guaranteed return products whether it is investment in PPF, or insurance premiums or ELSS to name a few.
- Housing Loan
- Tax exemption on interest component of housing loan raised from Rs 1.5 lakhs to Rs 2 lakhs
In case you have a home loan on a self occupied property, where you were earlier claiming an exemption of Rs 1.5L on the interest component of the loan, you are now allowed Rs 2 Lakhs.
- Small Saving Schemes:
- A special small saving scheme will be introduced encourage savings towards education & marriage of girl child
- Kisan Vikas Patra to be reintroduced for planned and unplanned savings – A KVP is a small saving scheme from Government of India where you can double the amount invested in 8 years and seven months. It can be encashed anytime after two and a half years from the date of issue at the value it had been bought and the interest due on it for the period. An adult can invest in Kisan Vikas Patra in his/her own name, or on behalf of a minor or even jointly with another adult.
While we await more details on these, let us start enjoying the benefits announced .