How Budget 2016 may increase disposable income of aam aadmi

The Budget 2016-17 is expected to increase the income tax exemption tax limit, and offer more tax deductions

Zee Media Bureau

New Delhi: Every time the Budget season approached in February, many of you may have wished if only the finance minister did not announce measures that hammered down your existing income.

If reports from sources are to be believed, your wish may actually come true.

As per reports, the Finance Minister, while presenting the budget on Feb 29, is likely to increase the personal income tax exemption limit up to Rs 3 lakh from the current Rs 2.5 lakh. He may also announce a higher deduction limit under Section 8OC up to Rs 2 lakhfrom the current Rs 1.5 lakh.

One can also expect to pay see a likely hike in the the tax deduction limit on interest on housing loan in case of self-occupied property to Rs 2.5 lakh from Rs 2 lakh. The minister is also expected to raise investment limit in PPF to Rs 2 lakh from the current Rs 1.5 lakh.

It would obviously mean that post the Budget 2016, you would not only have more income for spending, even have more scope for saving for future needs.