5 Major Highlights of Budget 2014 for Common Man/Salaried Person
Today Shri Arun Jaitely has presented the Union Budget 2014-15. This budget has given some reasons for a common man to smile. Few things which were expected from long time are fulfilled in this budget although some remains unaddressed. Still there are some major changes for common man.
1. Section 80C limit Increased
Limit of Deduction under section 80C has been increased by Rs.50,000. Earlier the deduction was capped to Rs.1,00,000 which is now increased to Rs.1,50,000 in this budget.
2. Basic Tax Exemption Limit Increased
Basic tax exemption limit is also increased by Rs.50,000. Maximum income not chargeable to tax is now increased from Rs.2,00,000 to Rs.2,50,000, thus saving tax of Rs.5090 (including cess).
3. Public Provident Fund Limit Increased
Deduction of the amount invested in Public Provident Fund is also increased. Since it is covered under section 80C, with the increase in limit of deduction under 80C by Rs.50,000, deduction of contribution to PPF also increased with the same proportion.
4. Home Loan Interest Deduction Increased u/s 24(b)
In a major relief, deduction of Interest on Home Loan under section 24(b)is also increased by Rs.50,000 on self occupied house (interest on let out house has no threshold limit i.e. you can claim full interest deduction on it.)
5. Home Loan Principal Repayment Deduction Increased
Home Loan Repayment deduction is directly linked with the Section 80C. Increasing the limit of Section 80C also increased the deduction of the amount of Home Loan Principal Repayment but only to bank or financial institutions. If loan is taken from any relative or friend, deduction of principal repayment is not allowed.