Budget 2014: Acche din for middle class as I-T, home loan ceilings hiked

Arnav Pandya

Individuals have a higher relief on the taxation front because of the higher basic exemption limit available to them. Since this has been raised by Rs 50,000 the basic savings in tax comes to Rs 5,000 for an individual. This is not the end of the benefit list because there is also a higher Section 80C investment limit which means that they can save more tax. The limit here has been raised to Rs 1.5 lakh so this becomes very attractive for those who have the necessary income and can make the savings as additional tax would be saved. There is a corresponding rise in the investment limit in the PPF to Rs 1.5 lakh so this area has kept pace with the tax changes making investment here an attractive option.

Senior citizens too have much to cheer, as the basic exemption limit for them has been raised to Rs 3 lakh.

Buying and staying in your own home also becomes more attractive because there is a higher deduction for interest paid on housing loan for a self occupied property to Rs 2 lakh. This will make a higher amount available as a deduction. All this will make it important for the investor to take a close look at their overall financial planning because allocation of more amounts for savings will ensure that there is a tax benefit that comes along with this process. Individuals need to be focused in their planning and ensure that long term planning as well as other goals are supported by their investments.