Tax burden for salary below Rs 5 lakh category individuals is reduced by Rs 3000
Tax exemptions can be aimed at promoting health insurance. Also government can offer tax incentives to channelize savings, which in turn work for individuals in their retirement planning.
Despite no apparent mention of income tax incentive for the common man, finance minister Arun Jaitley provided certain reliefs, that will put extra cash in hands.
Salaried individuals can witness different tax treatments for their income based upon the details under which the income has been paid to them. There are several examples of this but one of the most common ones that they will experience is that relating to conveyance.
Salaried class will see a slight increase in their savings every month, after finance minister Pranab Mukherjee widened the income tax bracket.
The Finance Ministry has been dealt another blow after modest advance tax filings by top corporates.