Highlights of Budget 2015 for Salaried Employees
- Published on March 11, 2015
- Transport Allowance Exemption is increased to Rs 1,600/- pm as against Rs 800/-pm in earlier years.
The Employer will have to modify the salary structures to increase transport allowance to Rs 1,600/- wef 1st of April, 2015, to have the benefit of exemption to its employees
- Limit of deduction of medical insurance u/s 80D is increased to 25,000/- from the existing limit of Rs 15,000/-In case of senior citizen the said limit is increased to Rs 30,000/- from Rs 20,000/-. In case of senior citizens above 80 years, medical expenditure of Rs 30000/- will be allowed as a deduction as they are not covered by Medical Insurance
- Contribution to pension fund limit increased to Rs 1.5 lakhs instead of Rs 1 lakh earlier.
- Additional deduction of Rs 50000/- U/S 80 CCD for contribution made to New Pension Scheme. This is over and above the 80C limit of Rs 1.5 lakhs.
- Section 80DDB- limit of expenditure increased to Rs 80000/- from Rs 60000/- in case of a senior citizen, for specified Diseases.
- Section 80DD and 80U- additional deduction of Rs 25000/- will be allowed
- Wealth tax is replaced with additional 2% surcharge on super rich with a taxable income over Rs. 1 crore annually.
- Option to employees for not contributing to Employees share of PF and not contributing to ESI – The budget gave reference to modifying the rules of EPF and ESIC for the benefit of salaried class having salary below certain limit. These provisions are still not clear and will be shared with you once the details are available confirming the exact provisions and how its going to work
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