With fresh incentives for individuals announced in the Union Budget today, the overall deduction limit under personal income tax has gone up to Rs 4,44,200 a year.
The government today proposed to revamp laws governing salary payment and granting employees a choice over how they get salary, saying it will amend legislation in this regard after consultation with stakeholders.
Formal sector workers may soon have an option to choose between EPF scheme run by retirement fund body EPFO and the New Pension Scheme (NPS) as also between and health insurance products and Employees State Insurance Corporation's (ESIC) health cover.
The government has abolished wealth tax and instead the finance minister has brought in a surcharge of 2 per cent on the super-rich with a taxable income of over Rs 1 crore.
Transport allowance for individual salaried employees has been doubled to Rs 1,600 per month from the existing Rs 800 per month. The total yearly benefit will amount to Rs 19,200 as opposed to Rs 9,600 at present.
In order to encourage people to buy more health insurance, Finance Minister Arun Jaitley today increased tax exemption limits under Section 80 D for payment of health insurance premium.