So..Finally wait is over, we have budget outlined for next year…
Lets have few highlights related to us directly :
1) Total exemption of up to Rs. 4,44,200 can be achieved.
|Deductions under 80C||Rs. 1,50,000|
|Deductions under 80CCD for contribution to NPS||Rs. 50,000|
|Interest on house property loan||Rs. 2,00,000|
|Exemption with new transportation allowance of Rs. 1,600 per month||Rs. 19,200|
|New deductible health insurance premium||Rs. 25,000|
2) Abolition of wealth tax, Additional 2% surcharge for the super rich with income of over Rs. 1 crore.
3) Service Tax increased to 14% from 12.36%, Means if you are spending of 10,000 /month for services you were paying Rs-1236 as service tax, from 1-Apr-15 you will pay 1400/- as service tax for the same services.
4) 100% exemption for contribution to Swachch Bharat, apart from CSR.
5) Tax-free bonds for projects in rail road and irrigation, This will be good to see to generate long term Tax Free income
6) Rate of corporate tax to be reduced to 25% over next four years.
– More Profits for Corporates means More Investments means more Jobs means prosperity
7) To develop an Indian gold coin, which will carry the Ashok Chakra on its face, to reduce the demand for foreign coins and recycle the gold available in the country.
8) PF contribution limit to be made optional i.e
Employees can now opt for EPF or New Pension Scheme and those below a certain threshold of income contribution to PF likely to be made optional
9) The transport allowance exemption hiked to Rs 1,600 per month from Rs 800 per month.
10) Limit of deduction of health insurance premium increased from Rs. 15000 to Rs. 25000. For senior citizens limit increased from Rs 20000 to Rs 30000
This is not to be confused with 15000/- Medical reimbursement. This hike is for medical insurance.
Overall assessment : This is good budget as far as India is concern, Common man (A middle class) may get some indirect reliefs.
Your comments are welcome!!