Income Tax rates and limits for individuals changes in Budget 2014
Budget 2014 presented by Mr. Arun Jaitly. Here are the changes made to income tax applicable to individuals.
1. Basic exemption limit increased to 2.5 Lakhs from 2 Lakhs
2. Basic Exemption limit increased to 3 Lakhs for senior citizens
3. 80C Limits increased to Rs. 1.5 Lakhs from 1 Lakh
4. Interest deduction for self occupied property increased to 2 Lakhs from 2.5 Lakhs
5. PPF Limits increased to 1.5 Lakhs from 1 Lakh
Question is how much Individual tax payers will save from these changes, if someone is paying taxes at 30% rates then his savings will be:
Around 45000 is the savings not considering other things.
Main Highlights of Budget 2014
1. Tax Exemption Limit increased to Rs.2.5 Lakhs (Will end up saving extra 5K p.a.)
2. Investment limit increased to 1.5lakh (will end up saving 5k more, if planned)
3. Deduction of Interest on self occupied property increased to 2.00Lakhs (another 5k savings, if planned)
4. All smokers will have to shell out more money on their smokes.
5. Aerated drinks to get costlier
6. Interest cost on Housing loans to become cheaper.
7. 19" LED LCD TV's to become cheaper
8. Footwear and branded clothes to become cheaper (all shopaholics will be pleased)
9. Computers to become cheaper.
10. Some more IIT's, IIM's, AIIMS to be set up.