With no major surprises in the Railway Budget presented by Suresh Prabhu on Thursday, all eyes will be on Finance Minister Arun Jaitley as he prepares to present the government's first full Union Budget on Saturday.
Income tax slabs have always been the most awaited section of the Budget. With the economy showing signs of recovering from the slowdown, speculations are rife if Jaitley will raise the slabs giving a relief to the tax payers across the spectrum.
In the past 9 months since the National Democratic Alliance came to power, all government policies have been a reflection of Prime Minister Narendra Modi's pet ideas of 'Make in India', 'Digital India' and 'Swachha Bharat'. It is likely that Jaitley's briefcase will also have the imprints of Modi's ideas and will have policies that could favour more investment in the country.
Here is a look at the tax slabs and deductions that have been proposed in the last 5 Union Budgets.
Budget 2014-2015 (PART 2)
By: Arun Jaitley
Personal income tax exemption limit increased by Rs 50,000
Previous limit Rs 2 lakh raised to Rs 2.5 lakh for taxpayers below the age of 60 years
Exemption limit increased from Rs 2.5 lakh to Rs 3 lakh for senior citizens
- No changes in the tax rate.
- No change in surcharge for corporates or the individuals, HUFs, firms etc.
- Education cess same at 3 per cent.
- Increase in investment limit under section 80C of the Income-tax Act from Rs 1 lakh to Rs 1.5 lakh.
- Increase deduction limit on interest on loan for self occupied house property from Rs 1.5 lakh to Rs 2 lakh.
- Investment allowance at the rate of 15 per cent to a manufacturing company that invests more than Rs 25 crore in any year in new plant and machinery for three years
Budget 2014-2015 (PART 1)
By: P Chidambaram
Income-tax exemption limit raised by Rs 50,000
Previous limit Rs 2 lakh raised to Rs 2.5 lakh for taxpayers, below the age of 60 years.
Exemption limit raised from Rs 2.5 lakh to Rs 3 lakh for senior citizens.
- No change in the rate of surcharge either for the corporates or the individuals.
- Education cess to continue at 3 per cent.
- Investment limit under section 80C of the Income-tax Act raised from Rs 1 lakh to Rs 1.5 lakh.
- Deduction limit on account of interest on loan in respect of self occupied house property raised from Rs.1.5 lakh to Rs.2 lakh.
- Investment allowance at the rate of 15 per cent to a manufacturing company that invests more than Rs 25 crore in any year in new plant and machinery.
- Investment linked deduction extended to two new sectors, namely, slurry pipelines for the transportation of iron ore, and semi-conductor wafer fabrication manufacturing units.
- 10 year tax holiday extended to the undertakings which begin generation, distribution and transmission of power by 31.03.2017.
Budget 2013-2014
By: Pranab Mukherjee
No change in either the slabs or the rates of Personal Income Tax
- In a relief for Tax Payers in the first bracket of Rs 2 lakhs to Rs 5 lakhs, a tax
credit of Rs 2000 given to people with total income upto Rs 5 lakhs.
- Surcharge of 10 per cent on persons whose taxable income exceed Rs 1 crore to augment revenues.
- Increase surcharge from 5 to 10 per cent on domestic companies whose taxable income exceeds Rs 10 crore.
- In case of foreign companies who pay a higher rate of corporate tax, surcharge to
increase from 2 to 5 per cent, if the taxabale income exceeds Rs 10 crore.
- In all other cases such as dividend distribution tax or tax on distributed income, current surcharge increased from 5 to 10 per cent.
- Education cess to continue at 3 per cent.
- Permissible premium rate increased from 10 per cent to 15 per cent of the sum assured by relaxing eligibility conditions of life insurance policies for persons suffering from disability and certain ailments.
- Contributions made to schemes of Central and State Governments similar to Central Government Health Scheme, eligible for section 80D of the Income tax Act.
- Donations made to National Children Fund eligible for 100 per cent deduction.
Budget 2012-2013
By: Pranab Mukherjee
Income-tax exemption limit raised giving tax relief of Rs 2,000
Previous limit Rs 1,80,000 raised to Rs 2,00,000
Upper limit of 20 per cent tax slab raised from Rs 8 lakh to Rs 10 lakh.
- Deduction of upto Rs 10,000 for interest from savings bank accounts.
- Deduction of upto Rs 5,000 for preventive health check up.
- Senior citizens not having income from business exempted from payment of advance tax.
Budget 2011-2012
By: Pranab Mukherjee
Income-tax exemption limit raised giving tax relief of Rs 2,000
Previous limit of Rs 1,60,000 raised to Rs 1,80,000
- Exemption limit enhanced and qualifying age reduced for senior citizens.
- Higher exemption limit for Very Senior Citizens, who are 80 years or above.
- Current surcharge of 7.5 per cent on domestic companies reduced to 5 per cent.
- Rate of Minimum Alternative Tax proposed to be increased from 18 per cent to 18.5 per cent of book profits.
- Additional deduction of Rs 20,000 for investment in long-term infrastructure bonds extended for one more year.
- Lower rate of 15 per cent tax on dividends received by an Indian company from its foreign subsidiary.
Comments
0 comment