2. Increase in the exemption limit for various allowances: Allowances such as transport allowance, children education allowance and hostel expenditure allowance are exempted under Income-tax Act, 1961 (the Act). But the exemption limit has been prevailing for many years now. The proposed limits of exemption are: conveyance allowance may be fixed at Rs 4,000 per month (at present at Rs 800 per month). Children education allowance exemption may be increased to Rs 2,000 per month (at present at Rs 100) and hostel expenditure allowance to Rs 3,000 (at present at Rs 300). 3. Raising the 1,00,000 deduction limit: Public investment instruments such as Public Provident Fund (PPF) and National Saving Certificates (NSC) are considered for deductions up to 1,00,000 under section 80C of the Act. Also life insurance premium, repayment of principal amount of a home loan, tuition fee paid for children are also listed for deductions. To increase the participation of public in investments and social security schemes, the proposed limit is 1,50,000. The increase in the limit will help tax payers to invest in higher funds and investments to get increased deductions.