Section 80C Limit: New update regarding increasing the limit of Section 80C of the Income Tax Department
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Section 80C Limit: The deduction up to Rs 1.5 lakh is claimed by the Income Tax Department under Section 80C. This exemption is given under many investment schemes.
Currently, investments up to Rs 1.5 lakh per year in various tax saving schemes, home loans and life insurance policies are eligible for deduction under Section 80C. Savings schemes eligible for deduction under section 80C include PPF, EPF, NSC, NPS, SCSS, FDs for five years in banks and post offices, ELSS and mutual funds etc.
Taxpayers have been demanding an increase in the Section 80C limit for many years. Even many groups demanded to increase it to 3 lakhs, in which ICAI in its pre-budget 2023 recommendations demanded the government to increase the limit under section 80C from 1.5 lakh rupees to 3 lakh rupees.
Will the government increase the limit
The Central Government has so far decided not to increase the limit under Section 80C. This information has been given in the statement issued by the Ministry of Finance. Also, a new tax regime has been introduced without section 80C deduction with lower rates by not increasing the limit. State Finance Minister Pankaj Chowdhary said in the Lok Sabha on July 31 that it has been the declared policy of the government to simplify the Income Tax Act, 1961 by reducing the rates of taxes. In such a situation, there is no proposal under consideration to increase the exemption under Section 80C of the Income Tax Act.
Increased interest in these schemes
Minister of State for Finance Pankaj Chowdhary said that in the second quarter (July to September) of the financial year 2023-24, the rate of interest on National Savings Fixed Deposit Scheme (1 year and 2 years) and National Savings Recurring Deposit will be 10 bps and 30 bps respectively increased by. has been increased. Choudhary also said that the net collection under small savings for the first quarter of the financial year 2023-24 was Rs 74,937 crore.
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