Published On: Mon, Feb 29th, 2016

Budget 2016: Income Tax relief on HRA raised to Rs 60,000

New Delhi: Finance Minister Arun Jaitley in his Budget 2016 speech announced that the income tax relief on House Rent Allowance (HRA) will be raised from Rs 24,000 per annum to Rs 60,000 per annum for people who earn upto Rs 5 lakh.

Finance Minister Arun Jaitley on Monday arrives at Parliament House to present the General Budget 2016-17.

Finance Minister Arun Jaitley on Monday arrives at Parliament House to present the General Budget 2016-17.

“The people who do not have any house of their own and also do not get any house rent allowance from any employer today get a deduction of Rs 24,000 per annum from their income to compensate them for the rent they pay.

I propose to increase the limit of deduction in respect of rent paid under section 80GG from Rs 24,000 per annum to Rs 60,000 per annum, which should provide relief to those who live in rented houses, ” Finance Minister Arun Jaitley said in his budget speech.

Also, people earning up to Rs 5 lakh a year will now get a income tax relief of Rs 5,000, as compared to Rs 2,000 previously.

While making no change in personal Income Tax slabs in the Union Budget 2016-17.

Jaitley on Monday in his budget speech, 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.

TST

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