Tax proposals in Budget 2015-16 for the common middle class tax payers benefit them in various ways. Budget 2015 which was expected to usher in the much awaited big-bang reforms, ended with the following impact:

• Exemptions For Individual Tax Players To Continue
• Swachh Bharat Abhiyan: 100% deduction allowed for all contributions except CSR
• Sec. 80D health insurance premium hiked from Rs 15,000 to Rs 25,000. For senior citizens it is Rs 30,000
• Additional deduction of Rs 50,000 under section 80CCD, with aim of moving from pensionless to a pensioned society
• Tax ease on serious diseases for seniors( Sec. 80DDB) raised to Rs 80,000
• Limit on deduction on account of contribution to a pension fund and the new pension scheme increased from Rs. 1 lakh to 1.5 lakh
• Payments to the beneficiaries including interest payment on deposit in Sukanya Samriddhi scheme to be fully exempt
• Transport allowance exemption doubled to Rs 1,600 per month
• Income tax on royalty fees to be cut from 25% to 10%
• Wealth tax abolished. To be replaced by surcharge of 2% on income of Rs 1 crore and above.
• Conversion of existing excise duty on petrol and diesel to the extent of Rs. 4 per litre into Road Cess to fund investment
• Service Tax exemption extended to certain pre cold storage services in relation to fruits and vegetables so as to incentivise value addition in crucial sector
• Yoga to be included within the ambit of charitable purpose under Section 2(15) of the Income-tax Act
• Concealment of income will attract 10 yrs of rigorous imprisonment
• Tax pass through to be allowed in alternative investment funds to boost small firms, start-ups
• Employees can opt for EPF or new pension fund. For employees below certain threshold, EPF should be optional from his side
• Service Tax increased to 14%
• Total benefit of all exemptions to Individual tax payers rises to Rs. 4,44,000.

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