INCOME TAX EXEMPTION LIMIT MAY BE ENHANCED.

 Hon'able Finance Minister Shri   Arun Jaitley may shower favours on middle-class in the form of Income Tax exemption and incentives for education and home loans in his first Budget which will be presented on July 10, sources said.

Finance Minister Arun Jaitely

Jaitley is likely to approve a proposal to enhance the personal Income Tax exemption up to Rs 3 lakh. Currently, the exemption limit stands at Rs. 2 lakh for both men and women who are less than 60 years of age.
A senior finance ministry official told DNA, “The ministry is examining the proposal for hiking the Income Tax exemption limit.”
Sources said the earlier system of women tax payers getting higher exemption, which was removed in the 2012-13 Budget presented by the then finance minister Pranab Mukherjee, will also be reintroduced by Jaitley.
Jaitely is also examining various incentives on home and education loans. Plus the Section 80C tax deductions, which allow a further Rs 1 lakh exemption is also being looked at.
The existing deduction limit of Rs. 150,000 for interest paid on self-occupied house property will be raised to Rs. 250,000.
The rate of interest on educational loans will be reduced in order to make foreign and domestic education more affordable. The procedure of getting education loan will also be simplified.
savings under Section 80C of the Income Tax Act will be increased from Rs. 100,000 to Rs. 150,000, which will allow the middle-class to save some tax and increase savings.
Certain areas under Income Tax Act in which amendments will be made to increase in the limit:-

Medical insurance premium:-

In order to encourage and bring more people under the health insurance umbrella, the deduction will be increased 15,000 from Rs to Rs 25,000 for individuals below 60 years and to Rs 40,000 for senior citizens under section 80D.

Conveyance allowance:-

currently Rs 800 per month will be increased as there has been a substantial hike in petrol and diesel prices.

children hostel expenditure allowance and children education allowance will be aligning them with the market rates from Rs. 300 and Rs. 100 per month/ child respectively.