The Changes In Tax Slabs From Last Year
Here are information about changed tax slabs. If individuals are not aware of these changes then they won’t get enough deduction on tax. Following are the changes made for this year as compared to last year.
As everyone know that the changes comes in this financial year is beneficial for the tax payer. The main change is the deduction limit under section 80C increased to 1,50,000 from earlier 1,00,000. PPF investment limit under section 80C also increased to 1,50,000. Above these exemption for interest paid on your housing loan has been raised to 2,00,000 from 1,50,000 earlier.
Income Tax exemptions
(1) Section 80C limit ( Raised to Rs.1,50,000)
Deduction allowed on premium paid for a life insurance policy, if it’s taken after 1 April 2012, and it’s less than 10% of sum assured. Deduction will not be available if it’s more than 10%.
(2) Section 80CCD
There is no changes made for Section 80CCD. As earlier deduction will be claimed only if the contribution to your NPS account is made by your employer and the deduction is limited to a maximum of 10% of your basic salary. The deduction under sec 80CCD is over and above the deduction available under section 80C.
(3) Section 80D
For Section 80D also have no changes in tis year. Deduction of Rs.15000/- is available if the same is paid as premium for Medical Insurance taken for self/dependents or towards preventive health check-up9max Rs.5000). In case any of self/dependents is a senior citizen, the deduction allowed is Rs.20000/-. Deduction available for
medical insurance for parents, Rs.15000/- if same is paid as premium for medical insurance. If they are senior citizen, then Rs.20000/- is available as deduction.
The Following sections also have no changes for this year.
(4) Section 80DD
(5) Section 80DDB
(6) Section 80E
(7) Section 80G
(8) Section 80U
(10) Medical Allowance
(12) Professional Tax
(13) Provident Fund
(15) Section 80TTA
(16) Conveyance/Transport Allowance
(17) Section 24)1)(vi) & Section 80EE
Under this section The maximum allowed housing loan interest raised to Rs.2,00,000 ( Eligible for loans taken after 1 April 1999. For loans before that maximum investment limit was 30,000).