The Union Budget 2016 is just around the corner. Hardly a week to go for the Budget. Expectations from you and other citizens are high. There are so many things you want out of this budget. An increase in tax benefits on your home loan….Is this what you seek? Perhaps a hike in the income tax exemption limit? Definitely you want this one.
Time to wait and watch…..Tune in to your TV set for the Union Budget 2016…You will not be disappointed.
If you are an individual tax payer below 60 years of age, there may be good news for you, after the Union Budget 2016. The minimum income threshold for paying personal income tax, may be raised from INR 2.5 Lakhs a year to INR 3 Lakhs a year, if you are below 60 years of age. Currently the income tax brackets are set as follows:
If your income is up to INR 2.5 Lakhs, you have to pay income tax of 10%. If your income is between INR 2.5 Lakhs to INR 5 Lakhs, you have to pay income tax of 20% and if your income is above INR 10 Lakhs, you have to pay income tax of 30%. This holds true if you are under 60 years of age.
The Government wants you to save. With inflation being high and cost of education and medical costs rising, the Government wants to increase disposable income in your hands. This would encourage you to spend more money and propel economic growth in the country.
You and other home buyers have a lot to complain. Property prices are rising. Interest rates on home loans are too high, though of late interest rates have been reducing. The Big Question…. Will the Government Give You and other Home Buyers Tax Benefits?
You and other home buyers want the Government to give you tax benefits. You get an income tax deduction of up to INR 1.5 Lakhs, on EMI (Principal) of the home loan, along with certain other financial instruments, under Section 80 C of the income tax act. You want the Government to increase this income tax deduction under Section 80 C of the income tax act, to INR 2 Lakhs. You also expect interest rates to come down, as the Government tries to promote affordable housing, under Housing for All by 2022 scheme. If you avail a home loan for a self occupied property, you get a tax deduction under Section 24, on the EMI (interest) you pay for the home loan, up to INR 2 Lakhs. You want this limit to be increased to INR 3 Lakhs.
You do not know the future. All you can do is hope for the best. Perhaps your wish list for the Union Budget 2016 might come true.
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