Tax rates for individuals
Other Exemptions
- For senior citizens, the exemption continues to be Rs 250,000 (the age criteria for assessee to be considered as a senior citizen is 60 years). For persons over 80 years of age, the exemption limit is Rs 500,000.
- The change in the slab rates would result in a tax savings of at least Rs 2,060 and a maximum of Rs 22,660 in the hands of individual taxpayers.
- A new section 80TTA is introduced to exempt interest of up to Rs 10,000 on savings deposits with banks / co-operative societies / post offices.
- Expenses up to Rs 5,000 on preventive health check-ups to be eligible for Section 80D(Section 80D has been amended also include any payment made by an assessee on account of preventive health check-up of self, spouse, dependent children or parents as eligible for deduction within the overall limit of Rs 15,000)
- A new equity savings scheme named after Rajiv Gandhi will provide for income tax deduction of 50 percent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakhs (However, the details of the above mentioned scheme are yet to be announced and details would be provided in due course)
- Section 80CCF - Additional deduction up to INR 20,000 for subscription to notified long term infrastructure bonds is removed
- Interest on Employee Provided Fund (“EPF”) reduced
- Although not arising out of the Union Budget, a recent change which impacts individuals is that the rate of interest offered on EPF as per the Employee Provident Fund Scheme, 1952 has been amended and reduced from 9.5 percent to 8.25 percent
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