Even though the income tax rates are not changed, for the middle class salaried citizens, there are something to cheer about!
Following are the changes proposed by finance minister Arun Jaitley in his budget speech 2014:
- All: Section 80C limit increased by Rs. 50k, from Rs 1 lakh to Rs 1.5 lakh
- All: Income tax limit increased by Rs. 50k, from Rs 1.5 lakh to Rs 2 lakhs
- All: Public provident fund(PPF) limit increased from Rs. 1 lakh to Rs. 1.5 lakh
- All: Deduction on housing loan interest rate increased to Rs 2 lakh from 1.5 lakh
- Senior Citizen: Tax exemption limit for small, marginal and senior citizens increased by Rs. 50k, ie, from Rs. 2.5 lakh to Rs. 3.0 lakhs