Budget 2024: Section 80C is of great use in Income Tax, can the government increase the amount of exemption in it?

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budget 2024: Income Tax (income tax) Many provisions of exemption have been made by the Government of India. Under Section 80C, you are given a tax exemption of Rs 1.5 lakh in a financial year. The benefit of this Act will be available to individual income taxpayers and HUFs (Hindu Undivided Families) gets both. But now there is a demand to increase the tax exemption available under 80C. The last interim budget of this tenure of the Central Government is to be presented by the Finance Minister on February 1. Experts say that Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) is expected to provide relief to taxpayers in the Union Budget 2024 to be presented by. Every year a common demand is that the deduction limit under Section 80C should be increased from Rs 1.5 lakh. This limit was last revised from Rs 1 lakh to Rs 50 thousand in the budget of 2014-2015.

In which investment is 80C rebate available?

Section 80C is a popular section under the Income Tax Act. It is commonly used by salaried income tax payers to claim tax deductions for investments and expenses. If you invest in Central Government schemes like PPF, PF, ULIP, ELSS, Life Insurance Premium, Sukanya Samriddhi Yojana, NSC etc. then you get tax exemption from the government. Basically the objective of this section is to encourage people to invest in government schemes by motivating them to save.

Why should the limit of Section 80C be increased?

According to Times of India, Surbhi Marwah, Tax Partner, EY India, says that the limit of Rs 1,50,000 for deduction under Section 80C has remained the same for the last nine years. Keeping in mind inflation and the fact that most of the section is used in making provident fund contributions and principal payment of housing loan, the limit of 80C should be increased to at least Rs 250,000. Chander Talreja of Vialto Partners said that the exemption available under Section 80C can be increased by the government to Rs 50 thousand. Also, expenses incurred on some studies, executive programmes, AI technology courses etc. can be included in this exemption.

Will Section 80C limit increase in Budget 2024?

Experts believe that there is no possibility of much tampering on the income tax front in the interim budget. Therefore, no change in the limit of Section 80C is expected on February 1, 2024. This being an interim budget/vote-on-account, it is prudent not to expect major changes in the personal tax regime.

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