Union Budget 2024: The salaried class has been waiting for a long time to increase the limit of 80C under the old tax regime. This time in the budget, it is expected that the Finance Minister can give good news to the common man on this after a long time.
Modi Govt Budget: The first budget of the third term of the Modi government will be presented a few hours from now. Like every time, this time also the salaried class has a lot of expectations from the Finance Minister. Regarding this time’s budget, sources claim that Finance Minister Nirmala Sitharaman can give relief to the employed under Section 80C. Currently, under 80C, you get tax rebate on investment of up to Rs 1.5 lakh, this time it is expected to be increased to Rs 2 lakh. If this limit increases, your taxable income will decrease and you will have more money to spend. 80C was last amended in 2014 during the tenure of the NDA government. Since then, no changes have been made in it.
Section 80C has two benefits, investment and exemption in the amount spent on certain things. To avail this exemption, you have to invest in PPF, EPF, Sukanya Samriddhi Yojana (SSY), ELSS or tax saving mutual funds etc. Apart from this, you can also claim the tuition fees of children and the principal amount paid for home loan under this section. Under 80C, you will get the benefit of tax exemption only on investment up to Rs 1.5 lakh.
You will get the benefit of 80C here
The big problem in increasing the limit of tax rebate available under section 80C is that this exemption is available only to those who choose the old tax system. Finance Minister Nirmala Sitharaman implemented the new tax regime in the 2020 budget, which has less tax deduction. The government wants more and more people to adopt the new tax system. In the 2023 budget, Sitharaman made the new tax regime more attractive by increasing the tax rebate, increasing the basic exemption limit, implementing standard deduction and reducing the highest tax surcharge.
Income tax exemption limit was increased in 2014
In the current Old Tax Regime, the common man got income tax exemption 10 years ago. In the year 2014, the government increased the income tax exemption limit from Rs 2 lakh to Rs 2.5 lakh. At that time, the tax rebate limit for citizens aged 60 to 80 years was increased from Rs 2.5 lakh to Rs 3 lakh. If the scope of income tax exemption is increased by the government this time, then it will be the biggest relief for the salaried class.
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