Union Budget 2014 has given a big smile to Tax Payers of every categories and slabs. The Exemption Limit along with the Investment rebate under 80 C has been increased along with the relief of addition Rs 50,000 on Home Loan Interest payment.
Mr. finance minister has taken a very bold steps to provide exemption to tax payers and cheers to Middle class. The hike in the exemption limit under 80C would provide much needed relief to salary earners who are reeling under the impact of high inflation.
New Income Tax Slab for Tax Payers
Indian Men and Women Less Than 60 Years of age
| New Income tax slab (in Rs.) | Tax Rate |
|---|---|
| 0 to 2,50,000 | No tax |
| 2,50,001 to 5,00,000 | 10% |
| 5,00,001 to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Income Tax Slabs for Senior Citizens Between 60 Yrs To 80 Yrs
Key Highlights :
| Income tax slab (in Rs.) | Tax |
|---|---|
| 0 to 3,00,000 | No tax |
| 3,00,001 to 5,00,000 | 10% |
| 5,00,001 to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
India Income Tax Slabs For Very Senior Citizens 80 Yrs and Above
| Income tax slab (in Rs.) | Tax |
|---|---|
| 0 to 5,00,000 | No tax |
| 5,00,001 to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Income Tax Exemption Under 80C
Investment limit under Section 80C of the Income-Tax Act has been raised from Rs 1 lakh to Rs 1.5 lakh with additional saving of Rs 50,000
Increase in Limit of Public Provident Fund (PPF)
Finance Minister has raised Public Provident Fund (PPF) deposit limit to Rs 1.5 lakh per annum. This was earlier pegged at Rs 1 lakh.
Hiking home loan Interest Rate
To incentivise investments into the sector, the deduction limit on account of interest on home loan in respect of self occupied house property has been raised from Rs 1.5 lakh to Rs 2 lakh.