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Post Demonetisation, Here Are 5 Tax Benefits Salaried Individuals May Get

70 views · Published 25 January 2017 · 1:38 · Indexed 20 September 2026

Channel: The Financial Express · 2017 · News & Politics

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One of the expectations from the Budget is that it may seek to strengthen the in-hand income of the taxpayers which could amplify their savings and expenditure.  Here are 5 measures which are anticipated to pacify tax cost of salaried individuals.
1. Revamping of the tax slabs
The existing basic exemption limit of Rs 250,000 is much less as compared to various other countries in the world and perhaps could be enhanced. The maximum rate of 30 per cent could be reduced and slab of Rs 10 lakh on which such maximum rate is levied could also be revised upwards.
2. Potential comeback of Standard Deduction
The standard deduction for salaried employees could be restored keeping in mind the rate of inflation and purchasing power of the salaried individual to boost the salary available for disbursement.
3. Tax Benefits on Housing Loans
To gear up for the Prime Minister’s mission of ‘Housing for All by 2022’, the maximum limit of deduction for interest on housing loan in case of a self-occupied house property could be increased from the existing limit of Rs 2,00,000.
4. Raising the deduction limit under section 80C
The deduction under section 80C is currently limited to Rs 1,50,000. Government should consider increasing the overall exemption limit of section 80C to boost the investment scenario for individuals.
5. Deductions for Medical Reimbursement
Tax free medical reimbursements are currently capped at Rs 15,000 per annum which is negligible in comparison to the cost incurred by the taxpayers. Thus, the limit could be made more realistic and should sync with current requirements.

Read More: http://www.financialexpress.com/budget/budget-and-you-2017/budget-2017-8-tax-benefits-salaried-individuals-must-get-post-demonetisation/521323/

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