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Budget 2016: Tax exemption threshold to be raised to Rs 3 lakh

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Indian Military Veterans
Arun Jaitley

Budget 2016 countdown: Although Finance Minister Arun Jaitley has already announced that his government cannot afford a ‘populist’ Budget, he is unlikely to turn a blind eye to the demands from the individual taxpayers.(PTI)

Individual taxpayers could get some relief as finance minister Arun Jaitley is likely to raise the minimum income threshold for paying personal income tax for those below 60 years of age to Rs 3 lakh a year from Rs 2.5 lakh at present, multiple sources told FE.
The income levels where the tax kicks in for senior citizens (of age above 60 years) and super seniors (age above 80 years) could also be correspondingly raised. In case of senior citizens, the current threshold for paying tax is Rs 3 lakh while it is Rs 5 lakh for super senior citizens. However, the higher slabs are unlikely to be revised, the sources added.
Currently, tax is payable at 10% of the amount by which the income exceeds Rs 2.5 lakh (up to Rs 5 lakh), at 20% (between Rs 5 lakh-10 lakh) and at 30% (above Rs 10 lakh) in case of individuals up to 60 years of age and HUFs.
Jaitley may also reintroduce the extra window of Rs 50,000 for claiming deductions under Section 80C for investments in infrastructure bonds. Currently, various specified investments are eligible for deductions subject to threshold of Rs 1.5 lakh and additionally, a deduction of Rs 50,000 is allowed for contributions to the National Pension System under Section 80CCD.
The government is aggressively taking steps to bring in more individuals under the tax net but it also wants to reduce the burden on the lower strata of the tax-paying community to the extent possible. “Of course, we are taking measures to bring in more persons under the tax net. We have a target of about 10 million new tax payers to be added in the current financial year. Till November, we added 3.74 million new taxpayers because of these measures,” revenue secretary Hasmukh Adhia had said in a recent interview with FE. In India, there are about 35-40 million individual taxpayers, a tiny segment considering the country’s huge population.
“Considering the savings rate and inflation, the threshold limit (for personal income tax) is expected to be raised so as to provide more disposable income in the hands of the individual. This could help in channelising the higher disposable incomes towards increasing consumption and thereby the economic growth,” said Vineet Agarwal, partner at KPMG in India.
Although, Jaitley has already announced that his government cannot afford a ‘populist’ Budget and rather there are needs for structural reforms, he is unlikely to turn a blind eye to the demands from the individual taxpayers. “The finance minister could look at increasing the limit under Section 80C up to Rs 250,000 so that people channelise their savings into investment linked deductions,” said Divya Baweja, partner at Deloitte Haskins & Sells. The government extended the limit to Rs 1.5 lakh in 2014-15 from Rs 1 lakh earlier. This includes investments in schemes such as postal deposit, provident funds, pension schemes, mutual funds and insurance.
The deduction for NPS investment has helped individuals at higher tax brackets to save more funds. For instance by availing the Rs 50,000 of deduction for NPS, the tax burden for individuals in the highest 30% tax bracket could come down by Rs 16,000, while it will be Rs 10,000 for those on the 20% tax slab and Rs 5,000 for those paying 10% tax.

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One Rank One Pension Arrears for HONY LT and HONY CAPT

, by indianmilitaryveterans

Indian Military Veterans

OROP Arrears for HONY LT and HONY CAPT

HONY LTHONY CAPT
QSNOWOROPDiffArrearsQSNOWOROPDiffArrears
15937311770239797150159785129763191129331
15.596081195223449500215.510030131773147127548
169842121342292928951610275133773102125724
16.5100761232222469103016.510519135843065124224
1710310125092199891251710764137903026122644
17.5105451270221578742317.511088140032915118145
1810779128952116857611811253142162963120090
18.5110131289518827627718.511498144362938119077
1911248128951647667531911742146552913118064
19.5114821292114395832319.511987148822895117334
2011716131171401567832012232151082876116564
20.5119511332013695548620.512476153422866116159
2112185135221337541892112721155752854115673
21.5124191373113125317521.512965155752610105783
221265413940128652122221321015575236595853
22.5128881415612685139222.51345515575212085924
231312214371124950622231369915575187676034
23.5133571459312365009523.51394415945200181101
241359114815122449609241418915945175671171
24.5138251504412194940624.51443315945151261281
251406015273121349163251467815945126751352
25.514294152739793967925.51492215945102341462
2614528152737453019526151671594577831532
26.514763152735102067026.5154121594553321602
2714997153363391374027156561620154522089
27.515231158215902391327.5159011620130012159
2815465160906252533128161451701086535058
28.515465160906252533128.5161451701086535058
2915465160906252533129161451701086535058
29.515465160906252533129.5161451701086535058
3015465160906252533130161451701086535058
30.515465160906252533130.5161451701086535058
3115465160906252533131161451701086535058
31.515465160906252533131.5161451701086535058
3215465160906252533132161451701086535058
32.515465160906252533132.5161451701086535058
>+33154651616069528168>+33161451701086535058
Source : Ex Airman Blog

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