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 budget expectations that crores of taxpayers of the country are expecting. This step can prove to be a big good news for crores of taxpayers. Currently, taxpayers who choose 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 last time the 80C limit was increased?
The Section 80C limit was last increased in 2014, when then Finance Minister Arun Jaitley raised it from Rs 1 lakh to Rs 1.5 lakh. This change was a major part of the government’s first budget. However, it has remained unchanged for the last decade. Taxpayers have been hoping for a long time that the 80C limit will be increased to provide relief according to 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 like various saving schemes like PPF, ELSS, life insurance, NSC and children’s tuition fees. This deduction is available only for individuals and Hindu Undivided Families (HUF).
Why should the 80C limit be increased?
Changing the limit of Section 80C reduces the taxable income of taxpayers, thereby benefiting them directly. Despite rising costs and increasing 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 utilising the entire limit.
What are the expectations from Budget 2025?
The Finance Minister will present the Union Budget on 1 February 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.
Related Articles:-
- LPG Price Changes : Key Financial Changes from January 1, 2025
- Govt Declared Holiday in banks, schools, govt offices on the demise of former Prime Minister Manmohan Singh
- Post Office’s New Rules: Government notified new rules under post office act. Details Here
- Bank timings Changed: Bank timings will change from January 1st, check before going, otherwise…
- Post Office’s superhit scheme, you will get Rs 9,250 every month…
