TAX Budget 2014

8/10/2019 TAX Budget 2014

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Budget 2014

Tax Proposals affecting Salaried employees.

The Budget 2014 was long awaited with an expectation to give greater benefits to

taxpayers. The Finance Minister announced the Tax Proposals making few changes

in the exemption limits and allowing small taxpayers to save some money. SalariedIndividuals find it difficult to save taxes as the major part of their salary are

deducted as TDS before they even get hold of their salary. The Budget 2014 will

allow employees to plan their taxes better and reduce their tax liability to a greaterextent.

8/10/2019 TAX Budget 2014




Below are enlisted the changes brought in by Budget 2014 that

would bring a smile to the face of small taxpayers:-

No change in income tax rates.

Income Tax Exemption limit increased to Rs. 2.5 Lakh from Rs. 2 lakh.

For Senior citizens exemption limit increased to Rs. 3 lakh.

Deduction u/s 80C increased to Rs. 1.5 lakh from Rs. 1 lakh

Deduction for Interest on housing loan for Self Occupied property

increased to Rs. 2 Lakh from 1.5 lakh.

8/10/2019 TAX Budget 2014




Increase of Basic exemption limit:

The basic exemption limit has been increased from Rs.2 lakhs to Rs. 2.50 lakhs for

individuals except senior citizens and for senior citizens between 60 to 80 years hasbeen increased from Rs. 2.50 lakhs to Rs. 3 lakhs.

The revised income tax slabs are given below the table

Rates for Individuals below 60 years

Income slabs Income tax rate

Income up to Rs. 2.50 lakhs Nil

Rs. 2.50 to Rs. 5 lakhs 10%

Rs.5 Lakhs to Rs. 10 Lakhs 20%

Rs. 10 lakhs above 30%

Rates for Individuals below 60 years below 80 Years


Income up to Rs. 3 lakhs Nil

Rs. 3 to Rs. 5 lakhs 10%



Rates for Individuals 80 years & above


Income up to Rs. 3 lakhs Nil

Rs. 3 to Rs. 5 lakhs Nil



Surcharge of 10% on Income tax those taxable income exceeds Rs. 1.0 crore willapply.

Education cess will apply 3% on the Income tax & Surcharge will apply for all.

These changes in slab will give to individuals a minimum tax relief of Rs.5150

8/10/2019 TAX Budget 2014




Increase in limit under section 80C:

Very famous section among individuals is section 80C, the section gives rebate for

various savings scheme till now Rs. 1 lakhs has been enhanced to Rs. 1.50 lakhs .

This change will give boost to habit of savings by the individuals and also give the

minimum tax relief of Rs.5150

Increase in Public provident fund:

Present investment cap of Rs. 1 Lakh under PPF scheme has been enhanced to

Rs.1.50 lakhs which will help in the cap under section 80C. This change will attract &help to make savings under PPF by the individuals.

Increase in housing interest deduction:

One more major section which individuals claim is housing loan interest under

section 24. Existing limit of Rs.1.50 lakhs for self occupied property interest

deduction has been enhanced to Rs. 2 lakhs. This will give the marginal tax relief of

Rs.5150 for those are claiming interest for self occupied property.

To Conclude: Looking into the amendments all together, small and marginal tax

payers can save taxes by planning out their expenses properly and availing more

benefits and tax reliefs. With the changes announced by the Finance Minister in the

Budget 2014, a normal individual can structure his income in a way to reduce his taxliability by 15,000.

Documents

TAX Budget 2014