Three major tax changes in 2015 - Fusion - WeRIndia

Three major tax changes in 2015

Three major tax changes in 2015

There will barely be any tax benefits for individuals in the Union Budget 2015-16. However, you might find more money being spent due to a hike in the service tax. Finance Minister Arun Jaitley has talked about some changes in tax. Here are the major changes you need to know about.

TDS on recurring deposit

Recurring deposits are those where the owner gets a monthly paid sum in order to improve savings in a systematic manner. Earlier, the rule was that TDS was only deducted on fixed deposits only if the interests were more than 10,000. Now the same rule is applicable to recurring deposits.

Interest income combined with other branches


Eariler, TDS was deducted if the interest income was more than Rs.10,000 per branch. However, it will now be calculated after adding interest from all the branches of the bank. The individuals whose income is less than Rs.2,50,000 this year don’t have to pay tax.

TDS on EPF

If the EPF amount is withdrawn before the completion of 5 years, then it will attract a TDS at 10 percent. If, the amount of withdrawal is below Rs.30,000 it will not attract TDS. Tax exemption is also available if EPF is withdrawn before 5 years of service.

Image Reference: Goodreturns

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