Budget 2014: Income Tax Exemption Limit Raised to Rs 2.5 Lakh

In big relief to tax payers, Finance Minister Arun Jaitley announced a number of changes to the Income Tax Act. The FM has raised the exemption limit on income tax from Rs 2 lakh to Rs 2.5 lakh. For senior citizens, the exemption on income has been raised to Rs 3 lakh per annum. Mr Jaitley has also hiked the exemption limit on long-term financial savings, currently capped at Rs 1 lakh, by Rs 50,000. Savings instruments such as housing loan repayment (principal), five-year and above tenure fixed deposits, provident funds (PFs) and life insurance policy premiums are some investment vehicles that qualify for tax exemption under Section 80C of the Income Tax Act. (Read more)