Finance Minister Arun Jaitley while presenting Budget 2015 said an individual tax payer will get a tax benefit of Rs. 4,44,200. But the actual tax deduction is 10,22,200 which is much more than 4,44,200. Calculations of FM does not include many other tax deductions which are available and commonly utilized by the taxpayers. This article shows the calculations of how much tax deduction is actually available to Tax Payer. Tax Deductions are available?
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Tax Deductions
Deduction refers to the amount that you can reduce from your taxable income. It means understanding alphanumeric combinations like Section 80C and 80DD. Our article Tax saving options : 80C,80CCC,80CCD,80D,80U,80E,24 discusses these Tax Deductions in Detail.
Total Tax Deductions available to Individual Taxpayers
| Sr. No. | Particular | Amount |
| A. | Rs.4.44 lakhs FM calculations | Rs.4,44,200 |
| B. | Other Tax-Deductions | Rs.2,54,000 |
| C. | Tax-Free Reimbursements | Rs.74,000 |
| D. | Basic Exemption Limit | Rs.2,50,000 |
| Total Tax-Deductions for Individual Taxpayers | Rs.10,22,200 | |
Tax Deductions available to Individual Taxpayers as per FM Calculations
Please Note that few of the deductions mentioned above like LTA, Employer Contribution towards NPS etc. have no ceiling limit and can be claimed as per actual expenses.
How much tax deductions available to salaried tax employee as per FM calculations
Tax Deductions and Allowances available for a Salaried Tax Payer
Some conservative estimates for a salaried employee, actual are linked to the basic salary of the employee. Our articles How to claim LTA and How to Claim HRA talks about submitting proofs to employer.
| Deduction | Amount | Remarks |
| Employers Contribution towards NPS | Rs.1,00,000 | Up to 10% of Basic Salary + Dearness Allowance |
| Tax-Free Medical Allowance | Rs.15,000 | Subject to Submission of Bills |
| Medical Insurance of Parent | Rs.30,000 | Increased from 20,000 to 30,000 in Budget 2015 |
| Leave Travel Allowance | Rs.25,000 | Given Every Two years |
| House Rent Allowance | Rs.84,000 | Depends on the Basic Salary and city |
| Total | Rs.2,54,000 | Other Tax Deduction |
Tax-Free Reimbursements available for a Salaried Tax Payer
| Deduction | Amount | Remarks |
| Phone and Internet Bills | Rs.24,000 | Subject to Submission of Bills |
| Newspapers, Magazines and Periodicals | Rs.14,000 | Subject to Submission of Bills |
| Meal Coupons | Rs.36,000 | Part of CTC comes around Rs.50 per meal |
| Total | Rs.74,000 | Tax-Free Reimbursement |
Basic Exemption Limit available to all.
| Assesse | Amount | Remarks |
| Individual Taxpayer | Rs.2,50,000 | Same tax slab for male as well as for female taxpayer. |
Related Articles:
- ALL ABOUT TAX SAVINGS
- Tax Exempt Allowances in Salary Schedule S in ITR2
- Salary,Allowances,Dearness Allowance,Government Salary, Pay Commission
- Choosing Tax Saving options : 80C and Others
