As the winter is setting in, 2015 seems to be getting over too soon! Another couple of months will beget the close of this financial year. Which also means its time to get ready with tax saving documents and investment proof declarations which have to be submitted to your employer. Your employer can then adjust your TDS deductions accordingly.
Today we bring you a quick recap of all the tax changes which were announced in the Budget of 2015 and are applicable effective financial year 2015-16. These changes are new tax savings means which you can start to take advantage of this year. Hope you stand to gain from a couple of these!
|Income Tax Changes compared to last financial year|
|Details||Section||Deductions Last FY||Deductions in the current FY|
|NPS||80CCD(1B)||–||Additional deduction of Rs 50,000|
|Health Insurance under section 80D|
|Health Insurance (for self, spouse and children)||80D||Rs 15,000||Rs 25,000|
|Health insurance (for senior citizen parent)||80D||Rs 20,000||Rs 30,000|
|Health care expenses for parent above 80 years who don’t have insurance||80D||–||Rs 30,000 or actual expenses whichever is lower|
|Note : maximum deduction for parents not to exceed Rs 30,000|
|Deduction for medical treatment of disabled dependant of tax payer||80DD|
|disabled dependant of tax payer (with 40% disability)||80DD||Rs 50,000||Rs 75,000|
|with 80% or more disability||80DD||Rs 1,00,000||Rs 1,25,000|
|Deduction for disabled tax payer||80U|
|with 40% disability||80U||Rs 50,000||Rs 75,000|
|with 80% or more disability||80U||Rs 1,00,000||Rs 1,25,000|
|Medical treatment for parents above 80 years for specified diseases||80DDB||Rs 60,000||Rs 80,000|
|Transport allowance||Rs 9,600||Rs 19,200|
|Sukanya Samriddhi Yojana||80C||–||Rs 1,50,000|
Be with us as our next couple of posts will focus around more information on tax savings for this financial year!
Do comment and ask any questions you have 🙂
This table was requested by Business Standard from ClearTax as part of an article they did on tax saving strategies which was published on 22nd November 2015.