Taxation for Individual as per Union Budget 2014-15

Raising Income tax exemption limit

Though the slab of tax free income has not moved up in line with real inflation, FM’s announcement on taxation has brought some sort of relief to the individual tax payers as it will increase the purchasing power of individuals and stimulate demand. 

The General Budget 2014-15 presented by the Union Finance Minister has raised the personal income-tax exemption limit by Rs 50,000/- that is, from Rs 2 lakh to Rs 2.5 lakh in the case of individual taxpayers, below the age of 60 years.

Exemption limit raised from Rs 2.5 lakh to Rs 3 lakh in the case of Senior Citizens. However there is no change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc. 

Raising tax exemption under 80C

Investment limit under Section 80C of the Income-Tax Act has also been raised from Rs 1 lakh to Rs 1.5 lakh which will encourage savings to some extent.

Public Provident Fund (PPF)

In further relief to the depositors, the Finance Minister has raised Public Provident Fund (PPF) deposit limit to Rs 1.5 lakh per annum. This was earlier pegged at Rs 1 lakh.

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