Union Budget 2014-15 - Personal Taxation On the personal taxation front, ICAI is delighted to note that many of its suggestions have been favourably considered in the Union Budget 2014-15. The Finance Minister has put more income in the hands of the individual taxpayer, including senior citizens, by raising the basic exemption limit by Rs.50,000. The increase in investment limit under section 80C from Rs.1 lakh to Rs.1.50 lakh will definitely encourage domestic savings and effectively channelize them towards economic growth. However, corresponding increase in the limit of investment in PPF may have the effect of directing the entire additional savings towards PPF. In order to offset the burden of high financing cost of housing, the limit of interest deduction in respect of a self-occupied property is proposed to be increased by Rs.50,000. This coupled with the interest benefit of upto Rs. 1 lakh under section 80EE introduced last year, would address the concern of rising interest costs of housing loans, especially for respect of middle and lower middle classes. An individual tax payer in the highest tax bracket would be able to save Rs.36,050 on account of the above proposals. The ordinary mas achhe din are on their way.
Posted on: Mon, 21 Jul 2014 08:33:57 +0000
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