Taxable limits raised, tenants breathe easy

In a relief to individual tax payers, Finance Minister Arun Jaitley on Monday increased the tax deduction limit to Rs 60,000 per annum from the current Rs 24,000 on the housing rent. “I propose to increase the limit of deduction of rent paid under 80 GG from Rs 24,000 per annum to Rs 60,000 to provide relief to those who live in rented houses,” he said while presenting the Budget for 2016-17 in the Lok Sabha.

The decision of increasing tax deduction brought a relief for lakhs of people living on rent across Delhi-NCR. The people welcomed the decision claiming it a major relief for them.  “Presently we get relief on Rs 24,000 but will avail the facility on Rs 60,000. The minister, by announcing this, tried to address a genuine concern. Earlier, we were paying a huge amount on rent but get tax deduction on a little portion of that,” said Abhishek Kumar, a tenant living in South Delhi area.

Amit Bharti, another tenant from Laxmi Nagar area, said: “The announcement is a big relief for those who have been living on rent in and around the city. “As we come to city for our livelihood, we get rented accommodations. When the government gives relief in tax slab over rent money, it provides respite and joy for us. With the announcement, we will be able to save thousands of rupees every year and will add more money to our account.”

The Finance Minister also proposed to raise the ceiling of tax rebate under 87A from Rs 2,000 to Rs 5,000. With this, individuals with income up to Rs 5 lakh will get a relief of Rs 3,000 in their tax liability. 

“Apart from increasing the tax deduction limit for lower income people, I announce tax rebate under 87A from Rs 2,000 to Rs 5,000 for the same category. The move will help them to manage their pockets up to a certain extent,” said Jaitley.