In a bold move to simplify
tax laws, the finance ministry is considering a plan to replace the tax
benefits given to individuals for investing in specified savings instruments
such as life insurance and provident funds with an upfront higher basic tax exemption
limit.
If the
proposal makes it into Union Budget for 2015-16, the current R1.5 lakh
deduction from the taxable income of individuals for investments in specified
savings instruments under Section 80C of the Income Tax Act would be
discontinued. Instead, the basic exemption limit would be correspondingly
enhanced.
That is, individual’s income up to Rs 4 lakh, or thereabouts,
could be exempt from tax, up from Rs 2.5 lakh currently.
No comments:
Post a Comment