Tax proposals for middle class: Deduction for Rent payers increased to Rs 60,000; first time loan takers get Rs 50,000 rebate

Feb 29: Presenting Union Budget 2016-17, Finance Minister Arun Jaitley  announced relief for the middle class.

Jaitley proposed to increase the limit of deduction of rent paid U/s.80 GG from Rs.24,000 per annum to Rs.60,000 spelling respite to those who don’t own any house and live in rented accommodation.

Meanwhile, the Finance Minister also announced deduction for additional interests of Rs.50,000 per annum for loans up to Rs.35 lakh sanctioned in 2016-17 for first time home buyers, where house costs does not exceed Rs.50 lakh.

For those earning less than Rs 5 lakh per annum,  Jaitley proposed to raise the ceiling of tax rebate U/s. 87A from Rs.2000 to Rs.5000 giving an additional relief of Rs.3000 in their tax liability.

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