Finance Minister today presented budget for current financial year 2014-2015.There was some relief for tax payers and three important points for individuals are as follows:
Income Tax Exemption Limit Raised:Exemption limit raised by Rs.50,000 from current 2 Lakh to Rs.2,50,000 Lakh.Senior Citizens entitled for exemption limit of Rs.3 Lakh.
Exemption Limit u/s 80C Raised: Exemption u/s 80C raised to 1.50 Lakh from current 1 Lakh.Investors have number of options like Fixed deposits of tenure 5 years,ELSS schemes of mutual funds,Premium towards insurance plans etc.This will enhance saving and investment from individuals.
Investment Limit in PPF Enhanced:Investment limit in PPF enhanced to 1.50 lakh from current 1.00 lakh p.a..Investment in PPF is eligible for 80C and interest accumulated is also free from income tax.Investment in PPF is subject to lock in of 15 years (premature withdrawal possible with some conditions).
More benefits on housing loan interest component:Deduction on limit on interest component on loan of self-occupied house have raised to Rs.2 Lakh.
Kisan Vikas Patra :KVP will be reintroduced while NSC with insurance cover will be launched.
So we can see that there will be some relief for tax payers in this financial year.Individual up to gross income of Rs.4 lakh can save tax completely if utilized complete limit of section 80C and there will be further tax saving if home loan for self occupied home is availed.
