Budget 2014: Personal Tax exemption limit raised to Rs 2.5 lakh
10/07/2014 16:19
The Union Finance Minister Arun Jaitley on Thursday has raised the personal income-tax exemption limit from Rs 2 lakh to Rs 2.5 lakh for all individuals below 60 years age, by providing a relief of Rs 50,000, as per PIB report. For senior citizens, the exemption limit has been raised to Rs 3 lakh in place of Rs 2.5 lakh. However, the surcharge rate will remain same either for corporates or for individuals, HUFs, firms etc. “Investment limit under section 80C of the Income-tax Act has also been raised from Rs. 1 lakh to Rs. 1.5 lakh. The education cess shall continue at 3 per cent on all tax payers,” said Finance Minister while presenting budget for 2014-15 in the Parliament. Further, deductions on account of interest on housing loan in case of self occupied property has raised to Rs 2 lakh from Rs 1.5 lakh. Thus, people below income limit of Rs 2.5 lakhwill be exempted from tax while tax on income from Rs. 2.5 lakh to Rs. 5 lakh is retained at 10 per cent, up to Rs. 10 lakh at 20 per cent and above Rs. 10 lakh at 30 per cent. Noting that households are main contributors to savings, he said the investment limit under 80 C has been raised to Rs. 1.5 lakh from the existing Rs. 1 lakh to encourage savings. Investment in Public Provident Fund (PPF) up to Rs. 1.5 lakh would now be exempt from tax. This was earlier pegged at Rs. 1 lakh.
10/07/2014 16:19
The Union Finance Minister Arun Jaitley on Thursday has raised the personal income-tax exemption limit from Rs 2 lakh to Rs 2.5 lakh for all individuals below 60 years age, by providing a relief of Rs 50,000, as per PIB report. For senior citizens, the exemption limit has been raised to Rs 3 lakh in place of Rs 2.5 lakh. However, the surcharge rate will remain same either for corporates or for individuals, HUFs, firms etc. “Investment limit under section 80C of the Income-tax Act has also been raised from Rs. 1 lakh to Rs. 1.5 lakh. The education cess shall continue at 3 per cent on all tax payers,” said Finance Minister while presenting budget for 2014-15 in the Parliament. Further, deductions on account of interest on housing loan in case of self occupied property has raised to Rs 2 lakh from Rs 1.5 lakh. Thus, people below income limit of Rs 2.5 lakhwill be exempted from tax while tax on income from Rs. 2.5 lakh to Rs. 5 lakh is retained at 10 per cent, up to Rs. 10 lakh at 20 per cent and above Rs. 10 lakh at 30 per cent. Noting that households are main contributors to savings, he said the investment limit under 80 C has been raised to Rs. 1.5 lakh from the existing Rs. 1 lakh to encourage savings. Investment in Public Provident Fund (PPF) up to Rs. 1.5 lakh would now be exempt from tax. This was earlier pegged at Rs. 1 lakh.
