Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: VAT RATES :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: empanelment :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: VAT Audit :: form 3cd :: due date for vat payment :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: ACCOUNTING STANDARDS
 
 
Budget Extravaganza »
 New look finance ministry team to frame contours of Budget 2018
 How presenting the Budget early seems to be paying off already
 Budget advancement helps Centre, states start spending early
 Five things that you can expect from the Mumbai civic budget today
 GST all set for July 1 rollout but casts shadow on state budgets
 Income-Tax collection revised in Rajasthan budget
 No new taxes likely in Maharashtra Budget
 H.P. budget devoid of any financial prudence
 GST, demonetisation todecide budget priorities
 Railways to come up with mini-budget tomorrow
 Budget today, but GST kills the tax suspense

Budget 2014: Good news for middle class! Those earning over Rs 10L can save up to Rs 20k tax
July, 11th 2014

Finance Minister Arun Jaitley's maiden budget has lived up to BJP's promise of ushering in achhe din — at least for the average Joes and Jyotsnas. The basic exemption limit for ordinary taxpayers has been raised from Rs 2 lakh to Rs 2.5 lakh.

For senior citizens, the limit for income on which they don't have to pay tax has been raised from Rs 2.5 lakh to Rs 3 lakh.

There is no change in the Rs 5 lakh tax exemption for very senior citizens above 80. The budget has also enhanced the annual deduction available under Section 80C from Rs 1 lakh to Rs 1.5 lakh. This was a long-pending demand of taxpayers.

The Rs 1 lakh limit was set nearly a decade ago and quickly gets exhausted due to the multiplicity of investments included under Section 80C, a provision that allows investors to reduce their tax liability. The proposed changes can lead to big tax savings for middle-class taxpayers. Those earning more than Rs 10 lakh a year stand to save up to Rs 20,000 annually in tax.

Relief for Smallest Taxpayers

Raising the basic exemption limit by Rs 50,000 will result in a tax saving of Rs 5,000. A Rs 50,000 increase in the investment limit under Section 80C will help save another Rs 15,000. However, the potential tax savings are lower for those in the lower tax brackets.

Taxpayers earning up to Rs 10 lakh a year will be able to save Rs 15,000 while those with an income of up to Rs 5 lakh a year will save a maximum of Rs 8,000 in tax.

And that too if they can find the additional Rs 50,000 to invest in Section 80C options. But those in the lowest tax bracket still have something to smile about. The budget has not removed the Rs 2,000 tax relief given last year to those earning below Rs 5 lakh a year. This means individuals earning up to Rs 4.2 lakh a year and investing Rs 1.5 lakh under Sec 80C will go out of the tax net.

The FM also announced additional tax benefits to home loan customers, increasing the deduction from Rs 1.5 lakh to Rs 2 lakh a year. Those with a home loan, availing of tax benefits, and in the highest tax slab can save an additional Rs 15,000 in tax.

Those earning up to Rs 10 lakh a year can save Rs 10,000 while those in the lowest tax slab stand to reduce their outgo by Rs 5,000. Another key positive is the raising of the annual investment limit in PPF Fund from Rs 1 lakh to Rs 1.5 lakh.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions