1) Tax slabs raised
The Income Tax slab has been raised from 2 lakhs to Rs 2.5 lakhs. What this means is that your tax liability gets reduced by Rs 5000.
2) Investment under Section 80C raised
Investment limit under Sec 80 C has been raised from Rs 1 lakh to Rs 1.5 lakh. What this means is that you can now invest in LIC, PPF, EPF to the tune of Rs 1.5 lakh, instead of Rs 1 lakh before and save money.
3) Home loans
Those that have availed home loan have reason to cheer. FM has now increased home loan tax deduction limit u/s 24 from Rs. 1.5 lakh to Rs 2 lakh. What this means is that the interest exemption limit on home loans has been raised to Rs 2 lakhs from the earlier Rs 1.5 lakhs. Again if you pay the entire interest on home loans to the tune of Rs 2 lakhs your tax liability gets reduced by Rs 5000.
The Minimum pension of Rs 1,000 for organised sector employees has been recommended in the Union Budget. This is expected to benefit 2.8 million pensioners who are getting getting less than Rs 1,000 as pension.
5) NSC with insurance cover
The National Savings Certificate, which only gave you tax benefits will now come with an insurance cover. This is good for those who have no insurance cover whatsoever.
6) PPF limit raised
The PPF not only provides you tax benefits under Sec 80C of the Income Tax Act, but, the interest income is also tax free. By hiking the limit on PPF that can be invested annually, your income is likely to get a boost, as you save by way of tax free interest income and also due to a hike in the limit to Rs 1.5 lakh, benefiting from Sec 80C investment.