To add more info how it's going to affect us:
It is heard that Congress government is planning to scrap tax exemptions on various policies like LIC, NSC, HRA, Mutual Funds & Other section 80C benefits (Exemptions Upto 1 lakh).
What does that mean:
- You cannot get tax exemtions on your HRA, i.e. No business of showing House rent agreement & receipts. You will be taxed on the whole HRA.
- You cannot claim tax exemptions by showing LIC Polocies or by having NSC Bonds.
- You wouldnt' be able to get tax exemtions on Housing loans.
- No Tax benefits on Mutual/Infrastructure bonds.
What does government wants:
Government is targeting the salaried people and is making sure that no tax exemptions can be availed and thereby collecting as much tax as possible from our salaries. |