Changes in the Income-tax provisions for F.Y. 2015-16

We have entered into a new calendar year a week before, but there are still three months for the financial year to end. The months January and February are the ones in which all the salaried taxpayers are rushing to submit proofs of their tax savings to their employers, so that their employers can adjust their TDS for the financial year. However some are still busy seeking appropriate tax saving investment options.

In the budget 2015, even though our Hon’ble Finance Minister Arun Jaitley has not increased the slab rates for individual taxpayers, however he introduced/amended certain tax saving options which might turn important for you in financial year 2015-16. Let’s go through all the amendments in the Income-tax provisions for Financial Year 2015-16 which are relevant for you to make the most of our tax savings.

Summary of changes in the Income-tax provisions for Financial Year 2015-16-

  1. Slab rates- There are no changes in the slab rates for individual. However, if the total income of an individual for the financial year exceeds Rs. 1 Crore, then surcharge has been enhanced to 12% shall be levied. Earlier the surcharge levy was 10%.

Click here to get the slab rates applicable for F.Y. 2015-16.

2. Income from salary-

Transport Allowance: The exemption limit for transport allowance was Rs. 800 per month till last financial year. However the same has been enhanced to Rs. 1,600/- per month. Hence the transport allowance received by salaried taxpayer in excess of Rs. 1,600/- per month is taxable as Income from Salary.

Click here to know “How allowances can help you save your taxes?”

3. Deductions from Gross Total Income-

Section No. Particulars Earlier provision New Provision (For F.Y. 15-16)
80C Contribution to Sukanya Samriddhi Yojana New section introduced. Deduction upto Rs. 1,50,000/-.
80CCD(1B) Contribution to National Pension Scheme New section introduced. Deduction upto Rs. 50,000/-.
80D Health insurance (Mediclaim):
1. In case of individual (other than senior citizen) Deduction upto Rs. 15,000/-. Deduction upto Rs. 25,000/-.
2. In case of senior citizen Deduction upto Rs. 20,000/-. Deduction upto Rs. 30,000/-.
3. In case of super senior citizen who don’t have mediclaim (above 80 years of age) New provision introduced. Deduction for health care expenses upto lower of Rs. 30,000/- or actual expenses.
80DD Medical treatment of disabled person dependent on taxpayer:
1. Severe disability (80% or more) Deduction upto Rs. 1,00,000/-. Deduction upto Rs. 1,25,000/-.
2. Non severe disability (less than 80%) Deduction upto Rs. 50,000/-. Deduction upto Rs. 75,000/-.
80U Medical treatment of disabled taxpayer:
1. Severe disability (80% or more) Deduction upto Rs. 1,00,000/-. Deduction upto Rs. 1,25,000/-.
2. Non severe disability (less than 80%) Deduction upto Rs. 50,000/-. Deduction upto Rs. 75,000/-.
80DDB Medical treatment of super senior citizen (age above 80 years) for specified diseases Deduction upto Rs. 60,000/-. Deduction upto Rs. 80,000/-.

              

Click here to know more about least known and well known schemes U/s. 80C.

Click here to know more about contribution to National Pension Scheme.

The only relief provided to the taxpayers is enhanced limits of mediclaim, medical treatment etc. to overcome the undue hardship faced by them regarding increase in the medical expenses. Also the new investment options such as Sukanya Samriddhi Yojana and National Pension Scheme are introduced with a view to boost the habit of savings of the taxpayers.

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Changes in the Income-tax provisions for F.Y. 2015-16
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We have entered into a new calendar year a week before, but there are still three months for the financial year to end. The months January and February are the ones in which all the salaried taxpayers are rushing to submit proofs of their tax savings to their employers, so that their employers can adjust their TDS for the financial year. However some are still busy seeking appropriate tax saving investment options. In the budget 2015, even though our Hon'ble Finance Minister Arun Jaitley has not increased the slab rates for individual taxpayers, however he introduced/amended certain tax saving options which might turn important for you in financial year 2015-16. Let’s go through all the amendments in the Income-tax provisions for Financial Year 2015-16 which are relevant for you to make the most of our tax savings. Summary of changes in the Income-tax provisions for Financial Year 2015-16-
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myITreturn
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