There have been many speculations on the raise of the exemption limit of tax of individual payers from Rs.2.50 lakhs to Rs. 3 lakhs to 5 lakhs. However, the Union Finance Minister Arun Jaitly has shocked tax payers keeping the same slabs of tax deduction. Some of the market analysts predicted there will be revival of standard deduction and enhancement of savings limit from Rs.1 lakh to Rs.1.5 lakhs. However, all of the aspirations of the salaried turned futile. People from all sections felt this as the worst ever budget of recent times.
Meanwhile, Jaitley said in order to encourage savings and to promote health care among individual tax payers, it is proposed to increase the limit of deduction on account of health insurance premium from Rs.15,000 to Rs.25,000 - for senior citizens this limit is to be increased from Rs.20,000 to Rs.30,000.