The Budget disappoints prima facie without any hike in exemption limits or tax slabs, as is the usual expectation. But overall, it has few measures that help secure the financial needs of the aam aadmi .

Here are some key personal income-tax related Budget proposals affecting the common man.

A thought for your future The budget encourages you to save for your golden years . It proposes that the taxpayer’s contributions to NPS would be entitled for a higher deduction up to the maximum overall limit of ₹1,50,000 (from ₹1,00,000).

It further proposes to grant an additional deduction of ₹50,000 for taxpayer’s contributions to NPS.

This will encourage investment in the NPS and will help ensure that you have regular cash flows to rely on even after you have stopped working.

Besides, contributions to approved pension schemes would be entitled for a deduction up to ₹1,50,000 (up from ₹1,00,000). This may make such approved pension products more attractive, encouraging the working population to contribute to a secure pension post-retirement.

Extension of the 80C deduction to amounts deposited in a girl child’s name under the Sukanya Samriddhi Scheme and making interest and withdrawals from it completely tax-exempt is another move that will encourage investors to plan for tomorrow’s needs.

Given rising healthcare costs, medical emergencies can burn a big hole in our pockets. The Budget has thoughtfully encouraged us to plan better for a rainy day.

Health is wealth It proposes a higher deduction of ₹25,000 (compared to ₹15,000) for health insurance premiums for insurance of oneself and family. Similarly, in case a senior citizen (60 years and above) is insured, an enhanced limit of ₹30,000 (up from ₹20,000) would apply. Additionally, recognising that insurance cover may not be available to very senior citizens (80 years and above), a deduction of ₹30,000 is to be allowed for medical expenses incurred, if they are not insured. A higher deduction of ₹75,000 (presently ₹50,000) is proposed to be allowed for medical treatment or payment toward approved insurance schemes for maintaining a disabled dependent. In case the dependent is severely disabled, this limit is proposed to be enhanced to ₹1,25,000 (presently ₹1,00,000).

This apart, certain conditions to avail a deduction for specified medical treatments have been relaxed. Furthermore, a higher deduction of ₹80,000 (up from ₹60,000) is proposed to be allowed for a very senior citizen for specified medical treatments.

Itches from the fineprint That said, there are indeed some small itches that have got drowned in the fine print. A 10 per cent tax is proposed to be deducted (TDS) from taxable withdrawals above ₹30,000 from the Employee Provident Fund scheme. Typically, withdrawals from EPF accounts having less than five years’ active contributions are taxed. To avoid undue hardship in deserving cases though, the authorities are permitted to deduct no tax, in case prescribed forms such as Form15G are provided.

Moreover, limit of interest income of ₹10,000 for non-deduction of tax at source is proposed to be reckoned across all accounts with a bank, instead of each branch separately.

So, for instance, if you earn ₹5,000 per annum as interest from a fixed deposit in one branch of a bank and ₹6,000 in another, TDS would not have been deducted earlier. Now, since your overall interest is above the ₹10,000 mark, the bank will deduct TDS. Furthermore, banks are required to withhold tax on the interest on recurring deposits also.

The writer is a Partner with Deloitte Haskins & Sells LLP. With inputs from Manish Shah (Senior Manager) and Vikas Birla (Deputy Manager)

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