Finance Minister came out with important announcements regarding income tax last year.Few changes were made to the existing income tax rules which were to be applicable from the financial year 2015 onwards.
The news announcement was really like a music to the ears of tax payers with low income and especially to the salaried class.These changes allow tax savings of ₹10,000 even if you fall in lower tax slab of income up to ₹5,00,000 per annum.
Important Changes :-
Following are the important changes made to the tax rules for the year 2015 ;
Exemption Limit Increase – The exemption limit has been raised to ₹2,50,000 from the previous figure of ₹2,00,000 for all tax payers below 60 years of age.This is same for both genders.For Senior Citizens of age 60-80 years,the limit is ₹3,00,000 and for Super Senior Citizens above the age of 80 years it is ₹5,00,000.
Increase In Savings Limit Under Section 80 C of Income Tax Rules – Now you can include your savings up to ₹1,50,000 as compared to previous ₹1,00,000 limit.There is no change in savings or investments under other sections eligible for tax saving.
The relaxations provided may not be as per expectations of common tax payers but this is really going to help you keep some more cash with you in this environment of high inflation.
To see more details,you may check out Income Tax Slabs and Deductions.