Payments to the Beneficiaries Including Interest Payment on Deposit in Sukanya Samriddhi Scheme to be Fully Exempt
The
Union Minister of Finance Shri Arun Jaitley in his Budget Speech in Lok
Sabha today proposed rationalization of various tax exemptions and
incentives to reduce tax disputes and improve tax administration. He
said, with a view to encourage savings and to promote health care among
individual tax payers, it is proposed to increase the limit of reduction
of health insurance premium from Rs 15,000 to Rs 25,000 and for senior
citizen this limit is increase from Rs 20,000 to Rs 30,000.
For
senior citizen above the age of 80 years, not eligible to take health
insurance, deduction is allowed for Rs 30,000 toward medical
expenditure. Deduction limit of Rs 60,000 on expenditure on account of
specified diseases is enhanced to Rs 80,000 in the case of senior
citizens.
Additional
deduction of Rs 25,000 is allowed for differently-abled persons,
increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to
increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case
of severe disability.
The Finance Minister Shri Jaitley also proposed to provide that
investment in Sukanya Samriddhi Scheme will be eligible for deduction
under section 80C of the income-tax and any payment from the scheme
shall not be liable to tax.
Limit
on deduction on account of contribution to a pension fund and the new
pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5
lakh.
Additional deduction of Rs 50,000 will be allowed for contribution to
the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5
lakh.
Details of tax deductions proposed are as follows:
·
|
Deduction u/s 80C
|
Rs 1,50,000
|
·
|
Deduction u/s 80CCD
|
Rs 50,000
|
·
|
Deduction on account of interest on house property loan (Self occupied property)
|
Rs 2,00,000
|
·
|
Deduction u/s 80D on health insurance premium
|
Rs 25,000
|
·
|
Exemption of transport allowance
|
Rs 19,200
|
Total
|
Rs 4,44,200
|
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