Deductions/Allowances/Perquisites applicable for Salaried Individual for FY 2014-15

Finance Act 2014 has introduced various changes in Income Tax Act,1961 and some of those related to deduction and exemptions available to Salaried Individual taxpayers, which includes  Amendments in Section80C, Section 80CCD, Section 80CCE and in Section 24 related to Interest deduction.   Here I have compiled attached  in Excel file Comprehensive list of Deductions , Tax free Allowances and Perquisites   highlighting important Amendments for Salaried Individual applicable for

Assessment Year 2015-16 / Financial year 2014-15 :-

Brief introduction

Section 80C

The limit of Investment under Section 80C is increased from 1 lacs rupees to 1.50 lacs. Following is the wording of the amendments

“In section 80C of the Income-tax Act, in sub-section (1), for the words “one lakh rupees”, the words “one hundred and fifty thousand rupees” shall be substituted”

Section 80CCD

Tax Benefits extended to Private Sector Employees. The date of joining condition for the service on or after 1.1.2004 not applicable to the employees in private sector for the purposes of deduction under

the said section. The limit under this section has been fixed at Rs. 1 Lakh.

Following is the wording of the amendments

“In section 80CCD of the Income-tax Act, in subsection (1)–– (i) for the words, figures and letters “Where an assessee, being an individual employed by the Central Government or any other employer on or after the 1^st day of January, 2004”, the words, figures and letters “Where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004 or, being an individual employed by any other employer” shall be substituted;

(ii) after sub-section (1), the following sub-section shall be inserted, namely:–

“(1A) The amount of deduction under sub-section (1) shall not exceed one hundred thousand rupees.”.”

Section 80CCE

Consequently limit of deduction under section 80C, 80CCC & 80CCD is increased to Rs. 1.50 lacs. Following is the wording of the amendments

“In section 80CCE of the Income-tax Act, for the words “one lakh rupees”, the words “one hundred and fifty thousand rupees” shall be substituted”

For Individual availing Home loan will be benefited more by increased in limit of Deduction of Interest increased to Rs. 2 lacs instead of Rs. 1.5 lacs earlier

2^nd Proviso to Section 24

Following is the wording of amendments

“Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within three years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed one lakh fifty thousand rupees two lakh rupees