Income tax news: Every citizen of the country has to pay tax on his annual income. Let us tell you that the date for filing income tax is approaching. If you also pay income tax, then the government is soon going to announce tax exemption under 80C, under which it is considering giving exemption of more than Rs 1.5 lakh to taxpayers while paying tax. Let us know about this decision of the government…
Income tax news: If you also file ITR (ITR Return File) every year, then you would be well aware of Section 80C of Income Tax.
Under this section you get a rebate of up to Rs 1.5 lakh on investment. There has been a demand from taxpayers and tax experts to increase the limit of Section 80C for the last several years.
Not only this, ICAI in its pre-Budget 2023 recommendation had suggested the government to increase the deduction given for Public Provident Fund (PPF) under Section 80C from Rs 1.5 lakh to Rs 3 lakh.
Last date to file ITR was 31st July
Now that the last date for filing ITR has ended on July 31, the government has clarified the position regarding increasing the limit of 80C.
According to the Finance Ministry, there is no proposal under consideration to increase the exemption limit under Section 80C of the Income Tax Act 1961. At present, annual investment up to Rs 1.5 lakh in many tax saving schemes like home loan and life insurance policy is eligible for deduction under section 80C.
Proposal to increase exemption under 80C not under consideration
Tax saving schemes eligible for deduction under Section 80C include PPF, EPF, NSC, NPS, SCSS, 5 year FD in banks and post office, ELSS Mutual Fund etc.
Union Minister of State in the Finance Ministry, Pankaj Choudhary, in a written reply to a question in the Lok Sabha on July 31, said that thus, no proposal to increase the exemption under Section 80C of the Income Tax Act is under consideration.
The Minister of State for Finance was replying to the question, ‘Has the government taken steps to streamline small savings schemes in view of the changing economic environment and interest rate scenario?
And acknowledged the need to simplify and expand the exemption under Section 80C of the Income Tax Act. Let us tell you that a record 6.77 crore ITRs have been filed in the year 2023-24.
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