Union Budget: Top Tax Proposals Announced by Arun Jaitley

Finance Minister Arun Jaitley in his first full-year Budget did not hike income tax exemption limits, as he did last year. However, he hiked the tax exemption limits of some allowances. Limit in deduction on health insurance has been hiked from Rs 15,000 to Rs 25,000 to encourage people to take health insurance. Health insurance premium deduction for senior citizens has been hiked to Rs 30,000. Contribution to new pension fund has been hiked from Rs 1 lakh to Rs 1.50 lakh. Transport allowance exemption has been hiked from Rs 8,00 to Rs 1,600. To provide for social safety net and pension to individuals, an additional deduction of Rs 50,000 for contribution to new pension scheme under Section 80CCD has been proposed while wealth tax has been abolished.