Income Tax Changes of financial year 2015-16

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

Also read here & here.

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.

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