Income Tax exemption limit raised by 50,000
Private employees have got some good news to cheer with their tax exemption. Finance minister Arun Jaitley has announced National budget 2014-15. FM raised the tax exemption limits by Rs.5000 on Thursday. This change is applicable for all individual tax payers.
As per Parliament’s approval the income tax exemption limit revised to 250,000 for all individuals below 60 years where as it is proposed at 300,000 for senior citizens. According to the public survey, this new proposal is likely to favor for 2 crore tax payers. In Parliament, while presenting budget for 2014-15 FM stated as “I propose not to make any changes in the tax rate. However, with the view to provide relief to small and marginal and senior citizen, I propose to increase the personal income tax.”
Apart from this, there will be no charge in direct tax rates. The tax exemption under 80C has been modified to 1.5 lk. The deductions that allowed under investments in insurance, house rent and pension are proposed to be raised by 50,000 to 150,000. Initially it was proposed to 500,000 as tax exemption but now fingers crossed and it is finally set to half of the proposed figure.
Income Tax exemption limit raised by 50,000 Reviewed by Praveen P on Thursday, July 10, 2014 Rating: