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Thursday 26 June 2014

Salaried women to get higher income tax exemption in the Budget 2014

Salaried women to get higher income tax exemption in the Budget 2014
Good news for salaried women! Narendra Modi Government is considering higher income tax exemption limit for women in the budget for 2014-15.
Finance minister Arun Jaitley is restructuring tax slabs and is thus set to approve a proposal to raise the tax exemption limit to Rs 3 lakh from existing Rs 2 lakh.

The Modi government will ease the tax burden on the middle class and impose a higher tax on the super rich in its first Budget to be presented by Union finance minister Arun Jaitley next month.

According to the proposal, under consideration of the new government, there would also be a tax on the super- rich bracket, comprising those earning Rs 10 crore or more of 35 per cent. This category would be above the Rs 1 crore, class which currently pays an effective tax of 33 per cent inclusive of a surcharge that the earlier government had introduced.


India’s tax regime is being overhauled by Finance minster

Women will be offered a higher tax relief — the threshold income below which individuals are not liable to pay taxes—for women could be fixed at between Rs. 3,25,000 to Rs. 3,50,000.
Rs. 1 lakh annual tax deduction allowed under Section 80C of the Income-tax Act has not kept pace with the rising inflation and needs revision.

A separate deduction of at least Rs 1 lakh per year specifically for education is being considered
Exemption on home loans:  To reduce the burden on households for the interest paid on housing loan for a self-occupied house property a deduction of up to Rs 1.5 lakh is allowed. It can be increased to Rs 5 lakh per year.

Moreover, a proposal to reduce the age for tax exemption for senior citizens to 60 years from 65 years is also under consideration.


EXISTING TAX STRUCTURE
Income of less than Rs. 2 lakh a year are exempt from paying taxes.
Earning between Rs. 2 lakh and Rs. 5 lakh annually are taxed at 10%,
Between Rs. 5 lakh and Rs. 10 lakh at 20%
Earning more than Rs. 10 lakh pays a tax of 30%.
Source: Sahara Samay News
[http://www.saharasamay.com/nation-news/676555821/salaried-women-to-get-higher-income-tax-exemption-in-the-budget-.html]
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