Today on 18th February we the middle class have been waiting anxiously for a tax benefit from our Finance minister Arun Jaitley under the leadership of “Acche Din Wali” Modi Government.
Finance budget was tabled and soon we realized that there is no Tax Benefit to us. But Finance Minister in a document said that there are “Benefits to Middle Class Tax Payers” in this budget. I scratched my head to find out the benefits that I have got. You will have to invest Rs 4,44,200 Rs per year to get the maximum tax benefit
Benefits to Middle Class TaxPayers in Budget 2015-16
Well as you might have realized that there are no changes in Tax Slab but these are the things that might save some tax for you. Please follow this link to know the Income Tax Slab AY 2016-17
- Increase of Tax Exemption of Medical Insurance Increased from Rs 15 Thousand to Rs 25 Thousand
- Transport Allowance increased from Rs 800 per month to Rs 1600 per month
- You can now choose between EPF and Pension Plan (NPS)
- Rs 12 will get you get a Life Insurance of Rs 2 Lacks
- Can Save Tax on the New Pension Scheme in which you will have to invest Rs 50 Thousand per year.
- Jan Dahn Yojana will attract a benefit of Rs 2 lacks for Life Insurance
- Tax Free investment in sukanya samriddhi account
Well all these points mentioned would make you feel that you have got something to cheer about but the increase in service tax from 12.36% to 14% would result in increase in almost everything in the market. This will make your weed a lot of money and you might lose up more money then you save.
This type of Budget is defiantly not good for a middle class but is god for Corporate India sentiments which eventually would increase jobs and increase in salary for the existing public. Keeping fingers crossed for a better India.
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