Budget 2015 -New Pension Scheme has been made optional

| February 28, 2015

Budget 2015 -New Pension Scheme has been made optional

Budget 2015 – Finance Minister during his budget scheme has made New pension Scheme optional. In his budget speech Finance minister has stated that employees can now opt between EPF or New Pension scheme. This will give a huge sigh of relief for employees coming under New Pension Scheme. Finance minister has also increased tax sops for employees working under New Pension Scheme. Tax benefits on NPS contribution has been increased from Rs. 1 Lakh to 1.5 Lakhs. Finance minister has also made Transport Allowance upto Rs. 1600 tax free.┬áHealth Insurance tax rebates has been increased from Rs. 15000 to Rs 25000. However there are no changes in tax slabs.

Other Highlights:-

All contributions to Sukanya Samridhi scheme to be tax free.

Individual tax payer will benefit to the extent Rs 4,44,200 from the exemptions announced.

Additional deduction of Rs 50,000 for pension contributions.

Govt increases limit of deduction of health insurance premium from Rs 15,000 to Rs 25,000.

100% deduction for contribution to Swachch Bharat and Clean Ganga schemes.

Category: Finance Ministry, Income Tax

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