Income Tax Deductions for Individual Taxpayers
The Figure Rs.4.44 lakhs, quoted in the Budget 2015 speech by Finance Minister, drew the huge attention of the Individual Taxpayers. While calculating the available tax deductions, Arun Jaitely has said that an Individual Taxpayers enjoys tax deductions of up to Rs.4.44 lakh a year. But this figure does not include many other tax deductions which are available and commonly utilized by the taxpayers.
Budget 2015: Tax Deductions of Rs.4.44 Lakhs
| Deduction | Amount | Remarks |
| Tax-Savings investments u/s 80C | Rs.1,50,000 | EPF, PPF, SSA, Insurance Premium, NSC, ELSS, Home Loan Principal Repayment etc. |
| Employee Contribution towards NPS u/s 80CCD(1B) | Rs.50,000 | Separate deduction for contribution towards National Pension Scheme announced in Budget 2015 |
| Home Loan Interest u/s 24(b) | Rs.2,00,000 | Home Loan Interest Paid on Self Occupied House Property |
| Health Insurance Premium Paid u/s 80D | Rs.25,000 | Limit increased by Rs.10,000 in budget 2015 |
| Transportation Allowance | Rs.19,200 | Allowance Doubled in budget 2015. |
| Total Deduction | Rs.4,44,200 | FMs Calculation |
PLUS
| Deduction | Amount | Remarks |
| Employers Contribution towards NPS | Rs.1,00,000 | Up to 10% of Basic Salary + Dearness Allowance |
| Tax-Free Medical Allowance | Rs.15,000 | Subject to Submission of Bills |
| Medical Insurance of Parent | Rs.30,000 | Increased by Rs.10,000 un Budget 2015 |
| Leave Travel Allowance | Rs.25,000 | Given Every Two years |
| House Rent Allowance | Rs.84,000 | Depends on the Basic Salary and city |
| Total | Rs.2,54,000 | Other Tax Deductions |
PLUS
Tax-Free Reimbursements
| Deduction | Amount | Remarks |
| Phone and Internet Bills | Rs.24,000 | Subject to Submission of Bills |
| Newspapers, Magazines and Periodicals | Rs.14,000 | Subject to Submission of Bills |
| Meal Coupons | Rs.36,000 | Part of CTC comes around Rs.50 per meal |
| Total | Rs.74,000 | Tax-Free Reimbursements |
PLUS
| Deduction | Amount | Remarks |
| Employers Contribution towards NPS | Rs.1,00,000 | Up to 10% of Basic Salary + Dearness Allowance |
| Tax-Free Medical Allowance | Rs.15,000 | Subject to Submission of Bills |
| Medical Insurance of Parent | Rs.30,000 | Increased by Rs.10,000 un Budget 2015 |
| Leave Travel Allowance | Rs.25,000 | Given Every Two years |
| House Rent Allowance | Rs.84,000 | Depends on the Basic Salary and city |
| Total | Rs.2,54,000 | Other Tax Deductions |
PLUS
Tax-Free Reimbursements
| Deduction | Amount | Remarks |
| Phone and Internet Bills | Rs.24,000 | Subject to Submission of Bills |
| Newspapers, Magazines and Periodicals | Rs.14,000 | Subject to Submission of Bills |
| Meal Coupons | Rs.36,000 | Part of CTC comes around Rs.50 per meal |
| Total | Rs.74,000 | Tax-Free Reimbursements |
Basic Exemption Limit
| Assesse | Amount | Remarks |
| Individual Taxpayer | Rs.2,50,000 | Same tax slab for male as well as for female taxpayer. |
Total Tax Deductions available to Individual Taxpayers
| Sr. No. | Particular | Amount |
| A. | Rs.4.44 lakhs as per Budget 2015 | Rs.4,44,200 |
| B. | Other Tax-Deductions | Rs.2,54,000 |
| C. | Tax-Free Reimbursements | Rs.74,000 |
| D. | Basic Exemption Limit | Rs.2,50,000 |
| Total Tax-Deductions for Individual Taxpayers | Rs.10,22,200 | |
Please Note that few of the deductions mentioned above like LTA, Employer Contribution towards NPS etc. have no ceiling limit and can be claimed as per actual expenses.
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