Bonanza for taxpayers in budget

Bringing cheer to individual taxpayers, Finance Minister Arun Jaitley in his maiden Union Budget 2014-15 in Parliament on Thursday, raised personal tax exemption limit to Rs 2.5 lakh from the current Rs 2 lakh. Income tax exemption limit for senior citizens has been raised to Rs 3 lakh. The Investment limit under Section 80C has also been hiked to Rs 1.5 lakh from the current Rs 1 lakh, while the FM increased housing loan interest rate deduction limit to Rs 2 Lakh. In further relief to the depositors, the FM announced that the PPF (Public Provident Fund) deposit ceiling will be raised to Rs 1.5 lakh from the existing Rs 1 lakh.
Highlights of budget 2014 regarding Income Tax
* No hike in direct tax rates 
* Retain tax targets for FY15
* Gross tax revenue seen 10.9% of GDP in FY16; 11.2% in FY17
* Retain interim gross tax collection aim
* Propose relief to individual tax payers
* Ups 80C tax break invest cap to Rs 150,000 from Rs 100,000
* Up tax exemption limit for senior citizens to Rs 300,000
* No change in rate of surcharge for corporates, individuals 
* No change in surcharge rates for direct tax
* To up personal income tax exemption limit to Rs 250,000
* Personal income tax exemption hiked by Rs 50,000 per year
* Will consider views on new Direct Tax Code draft
* Education cess to continue at 3%