Budget 2014: With higher tax exemptions Jaitley brings achhe din for savers: 1) The Public Provident Fund limit has been enhanced to Rs 1.5 lakh per annum from Rs 1 lakh. This is one of the best news for investors as the PPF is a tax free financial instrument. 2) Those with home loan have added reasons for cheer, reason being FM has now hikeed home loan tax deduction limit u/s 24 from Rs. 1.5 lakh to Rs 2 lakh 3) Individual tax payers will get exemptions of Rs 2.5 lakh, the limit has been increased by Rs 50,000. prior to this it was Rs 2 lakh. Senior citizens have not been left out either, tax exemption limit for senior citizens changed from Rs 2.5 lakh to Rs 3 lakhs. 4) To increase investment limit under Section 80 C from Rs 1 lakh to Rs 1.5 lakh. Debt mutual funds will be negatively impacted as Long Tern Capital Gain tax has been increased to 20 percent from 10 percent. Long term for debt funds will mean more than 36 months, prior it was 12 months. 5) The Employee Provident Fund Office will launch a unified account scheme for portability of provident fund. Earlier this year, the EPFO had a universal account number, which would make transferring the EPF account easier, when the account holder changes jobs. Read more --> bit.ly/1olJVO4
Posted on: Thu, 10 Jul 2014 10:20:59 +0000
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