Recently Budget-2015 announced for complete year by Finance Minister with new amendments and extension of Exemption Limit u/s. 80C, 80CCC, 80CCD, 80G, 80D, 80DDB, 80U etc. w.e.f. 1st April, 2015, which are as under:
Sukanya Samriddhi Scheme
Deduction under Section 80C & Tax free interest Sukanya Samriddhi Scheme meaning Girl Child Prosperity Scheme is a special deposit scheme launched by Prime Minister for girl child. Under the scheme, an interest of 9.1 per cent is provided on deposited amount which is tax free. Under this scheme, a bank account can be opened by the parent or legal guardian of a girl child of less than 10 years of age with a minimum deposit of Rs. 1,000/-up to Rs. 1, 50,000/- in any post office or authorised branches of commercial bank in an year. Partial withdrawal up to 50 per cent of the account balance is allowed to meet education expenses of the girl child till she attains 14 years of age. The account will remain operative up to 21 years of age of girl child or till marriage of the girl child. Deduction Under section 80C is also available for the amount contributed every year.
SECTION WISE DEDUCTIONS :
Deduction u/s 80CCC:
Deduction in respect of contribution to notified Pension Schemes under Section 80CCC has been increased to Rs. 150,000/- from Rs. 100,000/-.
Deduction u/s 80CCD:
Additional deduction of Rs. 50,000 for contribution to National Pension Scheme u/s 80CCD shall be allowed to all individuals.
Deduction u/s 80G:
- Donation made to National fund for control of Drug Abuse eligible for 100% deduction(Effective from 1 April, 2016)
- 100% deduction for contributions, other than CSR, to Swachh Bharat Kosh and Clean Ganga Fund(Effective retrospective from 1st April, 2014)
Deduction u/s 80D:- (Health Insurance)
Super Senior Citizens above the age of 80 years who are not covered by Health Insurance, to be allowed deduction of Rs. 30,000 towards actual medical expenditure. (Effective from 1st April, 2016)
Serious Diseases (u/s. 80DDB):
Deduction limit of Rs. 60,000 to be enhanced to Rs. 80,000 with respect to specified diseases of serious nature for senior citizen u/s 80DDB. (Effective from 1st April, 2016.
Disability Deduction (u/s. 80U):
Deduction limit of Rs. 50,000 to be enhanced to Rs. 75,000 for disabled person along with enhancement of limit of Rs. 1 Lac to Rs. 1.25 Lacs in case of severe disability u/s 80U of Income Tax Act. (Effective from 1st April, 2015).
New Section 80JJA :
80JJA –Special deduction for employment creation The existing provisions contained in section 80JJAA of the Act, inter alia, provide for a deduction to an Indian company, deriving profits from manufacture of goods in a factory, equal to 30% of additional wages paid to new regular workmen, in excess of 100 workmen employed by the assessee in such factory, in the previous year, for three assessment years including the assessment year relevant to the previous year in which such employment is provided. A further deduction is allowed for every increase beyond 10% of regular workforce for 30% of their salary up to 3 years. With a view to encourage generation of employment, it is proposed to amend the said section so as to extend the benefit to all assesses having manufacturing units (rather than restricting it to corporate assesses only) employing new regular workmen in excess of fifty workmen employed during the previous year. This amendment will take effect from Assessment Year 2016-17.
