Budget 2015: Tax exemption limit for health insurance increased to Rs 25,000; for NPS taken to Rs 1.5 lakh

NEW DELHI: In a move that will cheer the common man, Finance Minister Arun Jaitley in his budget speech announced several tax benefits. The tax exemption limit for health insurance was increased from Rs 15,000 to Rs 25,000. “This move is meant to encourage people to take health insurance,” Jaitley said.

The tax exemption limit for contribution to the National Pension Scheme was raised from Rs 1,00,000 to Rs 1,50,000. Also, the transport allowance for salaried, which currently stands at Rs 800 per month, was increased to Rs 1,600 per month.

Seeking to simplify the tax regime, Finance Minister Arun Jaitley in his budget speech announced that Wealth Tax will be abolished. "This will help simplify the tax structure," he said.

Moving ahead with his government’s focus on building infrastructure, Jaitley announced introduction of tax-free infra bonds for railways and roads.

"We have increased the budgetary allocation to roads & railways," said Jaitley. He also allocated Rs 25000 crore for the Rural Infrastructure Development Fund. Allocation on infrastructure was upped by Rs 70,000 crore. A National Investment & Infrastructure Fund was also announced.

In an innovative way to reduce demand for overseas gold, Finance Minister Arun Jaitley in his budget speech said, "We propose an Indian gold coin. This gold coin will have an Ashok Chakra."

"The Indian gold coin will help recycle local gold and cut overseas gold demand. The government will introduce Gold Monetization Scheme, Sovereign Gold Bonds and gold coins with Ashok Chakra," said Jaitley.

Announcing his government’s intention to come up with universal social security, Jaitley in his Budget speech said, "Under the Pradhan Mantri Surakhsha Beema Yojana, there will be an accident insurance of Rs 2 lakh."