Union Budget Changes - 2015- SAP Notes-2139208,2138605&2098325

[Former Member]

Union Budget Changes - 2015

SAP Notes-2139208 delivers the changes related to the Union Budget for 2015, as announced through Note 2137336.

Following are the changes that have been announced:

1. Surcharge of 12% for people having income more than 1 Crore from financial year 2015-16.

2. Transport allowance exemption hiked to Rs 1,600, from Rs 800 per month.

3. Changes under Section 80CCD: The limit has increased from 1,00,000 to Rs.1,50,000.

4. Changes under Section 80CCC: Section 01 sub section 01 from 1,00,000 to Rs 1,50,000 for certain Pension Funds.

5. Changes under Section 80C: As per the Sukanya Samridhi Account, a minimum amount of Rs 1,000 has to be deposited each year for the girl child account. A maximum Rs 1,50,000 can be invested in each financial year. The amount deposited in this account shall be eligible for deduction under Sec 80C. The interest payments shall be fully exempt from tax. Sec 10(11 A). This change is applicable from the financial year 2014-15.

6. Changes under Section 80G: 100 % deduction for contribution to Swachch Bharat and Clean Ganga schemes and National Fund for Control of Drug abuse.

7. Changes to Section 80D: The limit for non senior citizens remains Rs.15,000 in this category. Limit under the same categoty for senior citizens will be Rs. 30,000. Also, individuals who are more than 80 years old shall be allowed a deduction for medical expenses of up to Rs 30,000 from their total income.

8. Changes under Section 80DDB: Deduction towards medical treatment for senior citizens suffering from specified diseases has been raised from Rs 60,000 to Rs 80,000. If actual expenses incurred for treatment are lower, such lower amount shall be allowed as a deduction.

9. Changes to Section 80DD and 80U (Higher Income Tax Deductions for the differently abled): In order to provide tax benefit to those who are differently abled or those caring for dependents who may be differently abled, under Section 80DD and Under Section 80U, where disability is 40% or more but less than 80% the deduction limit has been raised from Rs 50,000 to Rs 75,000. And in case of more than 80% disability deduction allowed has been raised from Rs 1,00,000 to Rs 1,25,000.

Prerequisites:

SAP Note 2138605: Sec80C - Sukanya Samriddhi Scheme

SAP Note 2098325: Issue in IT Declaration in case of auto approval [In case you use ESS IT declaration]