Benefits to Middle Class Tax Payers in the Budget 2015-16

The Union Minister of Finance  Arun Jaitley in his Budget Speech in Lok Sabha today proposed rationalization of various tax exemptions and incentives to reduce tax disputes and improve tax administration. He said, with a view to encourage savings and to promote health care among individual tax payers, it is proposed to increase the limit of reduction of health insurance premium from Rs 15,000 to Rs 25,000 and for senior citizen this limit is increase from Rs 20,000 to Rs 30,000.

For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens.

Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.

The Finance Minister Shri Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.

Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.

Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.

Details of tax deductions proposed are as follows: ·

Deduction u/s 80C      Rs 1,50,000 

Deduction u/s 80CCD  Rs 50,000 

Deduction on account of interest on house property loan (Self occupied property) Rs 2,00,000 ·

Deduction u/s 80D on health insurance premium       Rs 25,000 

Exemption of transport allowance    Rs 19,200

Total  Rs 4,44,200

Rail Budget

Railway Budget presented today in Parliament proposed measures to make Indian Railways prime mover of Indian Economy once again. It seeks resource mobilization for higher investment, decongestion of heavy haul routes and speeding of trains and project delivery, better passenger amenities and safety, and to make railways a preferred mode of transport for masses.
Presenting the Budget in Parliament, Railway Minister, Suresh Prabhakar Prabhu said that all critical initiatives proposed will be pursued in mission mode.
The Budget proposals have set four goals to transform Indian Railways over next five years which are- a sustainable and measurable improvement in customer experience, make rail a safer means of travel, expansion of capacity substantially , modernization of infrastructure and finally to make railways financially self-sustainable. To achieve these goals the budget proposes five drivers which include adopting a medium-term perspective plan consisting ofWhite Paper, a Vision-2030 document and a five year action plan.
Building Partnerships with key stakeholders for long term financing and overseas technology, improving last mile connectivity, expanding fleet of rolling stock and modernization of station infrastructure are included in these drivers.
Railways will also leverage additional resources; envisages investment of Rs. 8.5 lakh crore in
next five years.
No hike in Railway Passenger Fares
Plan Outlay proposed Rs. 1,00,011 crore, increased by 52%
Allocation for passenger amenities up by 67%
Railways to become prime mover of Indian Economy, Five years action plan proposed
Rail Budget seeks resource mobilization for higher investment
Thrust on measurable and sustainable improvement in passenger experience and to make Rail a safer means of travel
Hot buttons, coin vending machines for railway tickets within 5 minutes, e-catering to select meals
from an array of choices
200 more stations to come under Adarsh Station scheme; Wi - Fi to be provided at B category stations
24X7 helplines for attending passenger problems and security related complaints
For the safety of women passengers surveillance cameras in suburban coaches
More General class coaches will be added in identified trains.
The speed of nine railway corridors will be increased to 160 and 200 kmph
Train Protection Warning System and Train Collision Avoidance System to be installed on select routes
77 new projects covering 9,400 km of doubling/tripling/quadrupling works proposed
A new department for keeping stations and trains clean under Swachh Rail Swachh Bharat Abhiyan