Individual Tax Payers To Benefit, No Change In Tax Rate

NEW DELHI: Not changing the income tax rates or increasing the exemption limits for individuals, union Finance Minister Arun Jaitley Saturday proposed increasing the range of tax deductible investments/ spend.

Presenting the budget proposals for 2015-16 in the Lok Sabha, Jaitley said the government is proposing to rationalise various tax exemptions and incentives to reduce tax disputes and improve tax administration.

The proposals mentioned by the finance minister made clear the government's focus on enlarging the tax-exempt investments/spend.

Jaitley said the proposals would result in tax deductions to the tune of around 440,000 crore.

Jaitley said in order to encourage savings and to promote health care among individual tax payers, it is proposed to increase the limit of deduction on account of health insurance premium from 15,000 to 25,000 -- for senior citizens this limit is to be increased from 20,000 to 30,000.

For senior citizens above the age of 80 years -- who are not eligible to avail of health insurance -- deduction will be allowed for medical expenses up to 30,000.

The deduction limit of 60,000 on expenditure on account of specified diseases -- like cancer -- will be enhanced to 80,000 in the case of senior citizens.

The minister also proposed additional deduction of 25,000 for differently-abled persons, increasing the limit from 50,000 to 75,000.

It is also proposed to increase the limit of tax deduction from 1 lakh to 1.25 lakh in case of severe disability.
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