Budget 2015 Simplified

TO SELL SOMETHING , TELL A WOMAN IT’S A BARGAIN ; TELL A MAN IT’S TAX DEDUCTIBLE …………Earl Wilson

Therefore,we are jotting down the changes mentioned in Budget 2015 which are more relevant to our personal finance . 

  • No Changes in Income Tax Slab and Income Tax Rates
  • Surcharge of 2 % will be levied for the individuals having an income of Rs 1 cr or more per year
  • Wealth tax will be abolished
  • Transport allowance exemption has been increased to Rs.1600 from Rs.800 (  After 15 yrs finally )
  • Health Insurance limit increased from Rs 15,000 to Rs 25,000 per year. In the same manner, for senior citizens – its raised from Rs 20,000 to Rs 30,000.In addition to it, Rs. 5000.00 additional deduction allowed for amount paid towards preventive health check-ups under 80D.
  • The  senior citizens who are above 80 years in age, and are not covered by any health insurance, they can avail a deduction of Rs 30,000 towards expenditure on medical treatment. For specified diseases, the limit is  increased to Rs. 80,000 (Section 80DDB )
  • When Sukanya Samriddhi Scheme was launched few months back , the interest was taxable . However , Arun Jaitley clarified that there won’t be any income tax on the interest part. (This is one more allowed deduction under crowded space of 80C)
  • An individual has to quote PAN number for all transactions that are of value greater than Rs. 1,00,000
  • Limit on pension scheme (NPS & Life Insurance) increased from Rs 1,00,000/- to Rs. 1,50,000 rupees. There is also an additional deduction of Rs. 50,000 for contribution to new pension scheme (NPS) under section 80CCD. ( More Clarity is needed on this section .
  • Service Tax Rate increased from 12.36% to 14%
  • Good news of Gold lovers : Special gold bond will be launched which is alternative to buying physical bond . The price of these bonds will be as per the movement of physical gold . And the good part is that this will be from govt. ( Details are yet to come out )
  • Secondly Gold schemes would be launched wherein you can deposit your gold bricks or coins ( No jewellery form of gold mentioned in budget speech ) and earn the interest on it . (We doubt … how much will it come ).

We , at Pentagraph , always suggest you to plan your taxes well in advance i.e. April month itself and start the investments accordingly keeping your asset allocation and financial plan on paper .