Tax Proposals Applicable for FY 15-16

General Tax Payers Proposed Tax Rates
Up to Rs 2,50,000 NIL
Rs 2,50,001 to Rs 5,00,000 10 per cent
Rs 5,00,001 to Rs 10,00,000 25,000 + 20 per cent
Rs 10,00,000 and above 1,25,000 + 30 per cent
For Senior Citizens of 60 years But less than 80 years Proposed Tax Rates
Up to Rs 3,00,000 NIL
Rs 3,00,000 to Rs 5,00,000 10 per cent
Rs 5,00,001 to Rs 10,00,000 20,000 + 20 per cent
Rs 10,00,000 and above 1,20,000 + 30 per cent
Very Senior Citizens of 80 Years and Above Proposed Tax Rates
Up to Rs 5,00,000 NIL
Rs 5,00,000 to Rs 10,00,000 20 per cent
Rs 10,00,000 and above 1,00,000 + 30 per cent

 

  • Surcharge of 12% of tax on income exceeding Rs. 1 Crore.
  • 3% education cess remains
  • Section 80D tax deduction amount increased from Rs. 15,000 to Rs. 25,000. Plus an additional Rs 30,000 if paying for dependent parents who are senior citizens.
    • For senior citizens limit increased to from Rs. 20,000 to Rs. 30,000
    • For very senior citizens (80 years or more) – who are not covered by health insurance, medical expenditure upto Rs. 30,000 is tax deductible
    • Deduction limit of Rs. 60,000 towards expenditure on account of specified diseases of serious nature to be enhanced to Rs. 80,000 for very senior citizens
  • Section 80U and Section 80DD
    • Additional deduction of Rs. 25,000 will be allowed for differently abled persons under section 80DD and 80U
  • Deduction on account of contribution to a Pension fund and New Pension Scheme enhanced from Rs. 1 lac to Rs. 1.5 lacs
  • 80CCD – additional deduction of Rs. 50,000 for contribution to New Pension Scheme
  • 80C – Investments under Sukanya samriddhi scheme is already eligible for deduction under 80C. Now even interest payments will be exempt. (Sukanya Samriddhi scheme to be included in 80 C Sub Sections)
  • Conveyance allowance or transport allowance – amount eligible for deduction increased to 1600 per month from 800 per month
  • Section 80CCG Rajiv Gandhi Equity Scheme – For first time investors in listed shares and Mutual funds. Eligible Benefit available for 3 consecutive years
  • Tax rebate of Rs 2,000 for all whose total income is upto Rs. 5 lacs…Section 87a continues

Summary

1 Deduction under Sec 80C Rs.1,50,000
2 Deduction under Sec 80CCD Rs.50,000
3 Deduction on account of interest for home loans (self occupied property) – Section 24 Rs.2,00,000
4 Deduction under Section 80D on health insurance premium Rs. 25,000
5 Exemption on Transport Allowance Rs. 19,200
6 Exemption on Medical Allowance Rs. 15,000
7 HRA Benefit Applicable as before
8 LTA Benefit Applicable as before
9 Reimbursements for expenses under Section 10(14) applicable

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