Budget 2025: Modi government can give big relief to taxpayers in the first budget of its third term. According to reports, Finance Minister Nirmala Sitharaman can increase the limit of Section 80C of the Income Tax Act from Rs 1.5 lakh to Rs 3 lakh in the upcoming Budget 2025.
Budget 2025: Modi government can give big relief to taxpayers in the first budget of its third term. According to reports, Finance Minister Nirmala Sitharaman can increase the limit of Section 80C of the Income Tax Act from Rs 1.5 lakh to Rs 3 lakh in the upcoming Budget 2025. However, these are just the expectations of the budget which crores of taxpayers of the country are expecting. This move can prove to be a big good news for crores of taxpayers. Currently, taxpayers choosing the old tax regime take advantage of saving tax under this limit, whereas this facility is not available under the new tax regime.
When was the 80C limit last increased?
The limit of Section 80C was last increased in 2014, when the then Finance Minister Arun Jaitley increased it from Rs 1 lakh to Rs 1.5 lakh. This change was a major part of the first budget of the government. However, there has been no change in it for the last decade. Taxpayers have been hoping for a long time that the 80C limit would be increased to provide relief as per their rising costs and income.
What is the benefit of section 80C?
Under section 80C, taxpayers get the benefit of tax deduction up to Rs 1.5 lakh. Under this, taxpayers can save tax on investments and expenses such as various saving schemes like PPF, ELSS, life insurance, NSC and children’s tuition fees. This deduction is available only to individuals and Hindu Undivided Families (HUF).
Why should the limit of 80C be increased?
Changes in the limit of section 80C reduce the taxable income of taxpayers, which directly benefits them. Despite rising costs and rising salaries over the years, there has been no change in the limit of 80C. This makes many taxpayers feel the need to save their taxes by using the full limit.
What are the expectations from Budget 2025?
The Finance Minister will present the Union Budget on February 1, 2025. Taxpayers are hoping that the 80C limit will be increased to Rs 3 lakh, which will give them more exemption in their investments and savings. If this happens, this move will prove to be a big relief for taxpayers from the government.
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