Individual Tax Payers To Benefit, No Change In Tax Rate

According to Jaitley, investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income tax and any payment from the scheme shall not be liable to tax.

Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from 1 lakh to 1.5 lakh. Additional deduction of 50,000 will be allowed for contribution to the new pension scheme under section 80 CCD of Income Tax Act -- increasing the exemption from 1 lakh to 1.5 lakh.

Jaitley also doubled the transport allowance exemption to 1,600 per month.

According to him, the details of tax deductions proposed are as follows:

Deduction u/s 80C - 150,000; Deduction u/s 80CCD - 50,000; Deduction on account of interest on house property loan (Self-occupied property) - 200,000; Deduction u/s 80D on health insurance premium - 25,000; Exemption of transport allowance - Rs 19,200; Total - 444,200

Reacting to the budget proposals, Prashant Khatore, tax partner, Ernst and Young told IANS: "The finance minister is connecting various proposals to the Make In India programme. Though there is no change in personal income tax rates, the corporate tax rate has been proposed to be brought down to 25 percent over a four-year period."
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