Income Tax Structure 2015-16 – No change in Income Tax Exemption Limit

No change in Income Tax Exemption Limit – More Income Tax exemption for health insurance and Transport Allowance

We provide here the Income Tax Structure for the financial year 2015-16 (Assessment Year 2016-17)

1. No change in Slab rate for Individuals.

2. Transport allowance exemption increased from Rs.800 to Rs.1600.

3. Medical Insurance exemption increased from Rs.15000 to Rs.25000

4. Extra Cess of 2% for ‘Swacch Bharat Abhiyan’.

5. Corporate Slab rate changed from 30% to 25% for forthcoming 4 years.

6. Abolishment of Wealth tax.

7. 2% surcharge for Super rich individuals (having annual income more than Rs. 1 Crore).

8. Sukanya Smridhi Scheme eligible for Section 80C and interest would be tax free.

9. PAN card mandatory for transaction above Rs. 100000.(i) The rates of income-tax in the case of every individual (other than those mentioned in (ii) and (iii) below)

Other Budget 2014 highlights relating to Income tax 2014-15

• Personal tax exemption limit raised to Rs 2.5 lakh from current Rs 2 lakh for taxpayers below 60 years
• Senior citizens’ tax exemption limit hiked from Rs 2.5 lakh to Rs 3 lakh
• No change in surcharge for corporates, individuals
• Education Cess to stay at current 3%
• Investment limit under Section 80C hiked to Rs 1.5 lakh from current Rs 1 lakh
• Exemption on housing loans interest on self-occupied property increased from Rs 1.5 lakh to 2 lakh