The budget document summarizes key changes to India's 2015 budget that impact individual employees and taxpayers. Some highlights include: no changes to income tax slabs; replacing wealth tax with a 2% surcharge for income over 1 crore; increasing transport allowance to Rs. 1600 per month; additional Rs. 50,000 deduction for NPS contributions; fully exempting interest on Sukanya Samriddhi accounts; and increasing deductions for medical insurance, senior citizen medical expenses, and treatment of specified serious illnesses.

1. India Budget 2015
Impact on the Individual Employee
First Impressions

2. Highlights
• No change in Tax Slabs
• Wealth Tax replaced by Additional Surcharge
• Transport Allowance enhanced to 1600pm
• Additional Deduction of 50,000 for contribution to NPS
• Interest on Sukanya Samriddhi Scheme fully exempt; No tax to
beneficiary on payment.
• Higher exemption for Medical / Health Insurance Premium
• Senior Citizens above 80 without health Insurance allowed
deduction for Medical Expenses
• Deduction for Medical Expenses for specific serious diseases
enhanced to 80,000
• Differently abled person allowed additional deduction of 25,000
• Service Tax Exemption on Varishta Bima Yojana

3. Tax Slabs - Individuals
INCOME FY 2014-15 / AY 2015-16 FY 2015-16 / AY 2016-17
Upto 2,50,000/- Nil Nil
2,50,000 – 5,00,000 10% 10%
5,00,000 – 10,00,000 20% 20%
10,00,000 + 30% 30%
Education Cess 2% + 1% 2% + 1%
Additional Surcharge Nil 2% (Above 1,00,00,000)

4. Exemptions u/s 10 (14)
EXPENSES FY 2014-15 / AY 2015-16 FY 2015-16 / AY 2016-17
Transport Allowance Rs. 800 per month Rs. 1600 per month
~ Rs. 9,600 per annum ~ Rs. 19,200 per annum

5. Tax Deductions u/s 80C
INVESTMENT FY 2014-15 / AY 2015-16 FY 2015-16 / AY 2016-17
Contribution to Sukanya
Samriddhi Yojana
Upto Rs. 1,50,000 Upto Rs. 1,50,000
Interest on Sukanya
Samriddhi Yojana
Nil Fully Exempt

6. Tax Deductions u/s 80CCC / 80CCD
INVESTMENT FY 2014-15 / AY 2015-16 FY 2015-16 / AY 2016-17
Contribution to a Pension
Fund
Upto Rs. 1,00,000 Upto Rs. 1,50,000
Contribution to the New
Pension Scheme
Upto Rs. 1,00,000 Upto Rs. 1,50,000

7. Tax Deductions u/s 80D/DD/DDB
EXPENSE FY 2014-15 / AY 2015-16 FY 2015-16 / AY 2016-17
Medical / Health Insurance Upto Rs. 15,000 Upto Rs. 25,000
Medical / Health Insurance
of Parents / Senior Citizens
Upto Rs. 20,000 Upto Rs. 30,000
Expenditure for treatment
of uninsured Very Senior
Citizen (80+)
Nil Upto Rs. 30,000
Expenditure for treatment
of handicapped dependent
Upto Rs. 50,000 Upto Rs. 75,000
Expenditure for treatment
of severely handicapped
dependent
Upto Rs. 1,00,000 Upto Rs. 1,25,000
Expenditure for treatment
of specified serious illness
of Very Senior Citizen
Upto Rs. 60,000 Upto Rs. 80,000

8. Tax Deductions u/s 80U
Nature FY 2014-15 / AY 2015-16 FY 2015-16 / AY 2016-17
Handicapped dependent Flat Rs. 50,000 Flat Rs. 75,000
Severely handicapped
dependent
Flat Rs. 1,00,000 Flat Rs. 1,25,000

9. Service Tax Changes
• For the benefit of senior citizens, service tax
exemption will be provided on Varishta Bima
Yojana.
• It is proposed to increase the present rate of
service tax plus education cesses from 12.36%
to a consolidated rate of 14%.

10. Other Changes
• The excise duty on footwear with leather
uppers and having retail price of more than
Rs. 1000 per pair is being reduced to 6%.
• Quoting of PAN is being made mandatory for
any purchase or sale exceeding the value of
Rs. 1 lakh.
• Prohibition on acceptance or payment of an
advance of Rs. 20,000 or more in cash for
purchase of immovable property.

11. Thanks