As finance minister Arun Jaitley begins engagements with stakeholders for Budget for 2016-17 from Monday, Assocham has recommended hike in tax-exempted savings limit to Rs 2.5 lakh from Rs1.5 lakh at
As finance minister Arun Jaitley begins engagements with stakeholders for Budget for 2016-17 from Monday, Assocham has recommended hike in tax-exempted savings limit to Rs 2.5 lakh from Rs1.5 lakh at present and re-introduce the concept of standard deductions for salaried employees.
In its pre-Budget memorandum to the finance ministry, Assocham has also pitched for revision of the deduction of interest on housing loans to at least Rs 3 lakhs from the existing Rs 2 lakh and a similar limit be set for principal loan repayment from Rs 1 lakh at present.
“Increase in the limit of the interest and principal repayment will give a boost to the real estate sector. Present limits are extremely low,” said Assocham.
In another suggestion to help the salaried employees, Assocham said the leave encashment exemption limit for tax calculation should be raised to Rs 10 lakhs.
