How a tax payer can save Rs 4.44 lakh

New Delhi: In the first full-fledged Budget of the Narendra Modi government, Finance Minister Arun Jaitley on Saturday extended benefits to middle class tax payers which would result in saving of Rs 4.42 lakh.

The increase in limit of deduction in health insurance premium, Pension Fund, New Pension Scheme, Sukanya Samridhi Scheme, transport allowance, Varishta Bima Yojana are some of the schemes initiated by the government leading to an individual tax payer getting tax benefit of Rs 4,44,200.

The details are as follows:

Increase in the limit of deduction in respect of health insurance premium from Rs 15,000 to Rs 25,000.

For senior citizens the limit will stand increased to Rs 30,000 from the existing Rs 20,000.

For very senior citizens of the age of 80 years or more, who are not covered by health insurance, deduction of Rs 30,000 towards expenditure incurred on their treatment will be allowed.

The deduction limit of Rs 60,000 towards expenditure on account of specified diseases of serious nature is proposed to be enhanced to Rs 80,000 in case of very senior citizens.

Additional deduction of Rs 25,000 will be allowed for differently abled persons under Section 80DD and Section 80U of the Income-tax Act.

The limit on deduction on account of contribution to a Pension Fund and the New Pension Scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.

To provide social safety net and the facility of pension to individuals, an additional deduction of Rs 50,000 is proposed to be provided for contribution to the New Pension Scheme under Section 80CCD. This will enable India to become a pensioned society instead of a pensionless society.

Investments in Sukanya Samriddhi Scheme is already eligible for deduction under Section 80C. All payments to the beneficiaries including interest payment on deposit will also be fully exempt.

Transport allowance exemption is being increased from Rs 800 to Rs 1,600 per month.

For the benefit of senior citizens, service tax exemption will be provided on Varishta Bima Yojana.

After taking into account the tax concession given to middle class tax payers in Budget 2014-15 and Budget 2015-16, a tax payer can save Rs 4,44,200.