Budget 2024 : Now in a few hours, the budget of the Modi government is going to be presented. This budget is the first full budget of the third term of the Modi government. Earlier, the government had presented the interim budget on February 1.
Even in the interim budget presented at the beginning of the year, taxpayers were demanding to increase the limit of 80C. This demand is also from the budget to be presented today. If sources are to be believed, Finance Minister Nirmala Sitharaman can increase the limit of 80C to Rs 2 lakh in the budget. Now it remains to be seen what exemptions taxpayers can get from the budget.
What is section 80 in income tax?
Most taxpayers choose Section 80C as their preferred tax saving option. Under Section 80C of the Income Tax Act 1961, if individuals opt for the old tax regime, they can avail a maximum deduction of ₹1.5 lakh for the financial year 2024-25. Those who opt for the new tax regime cannot avail this deduction.
Will the 80C limit increase after 10 years?
Under Section 80C, taxpayers are allowed a maximum tax deduction of Rs 1.5 lakh. However, taxpayers can invest in one or more savings. They can save their tax through this. Now it is expected that in the first budget of the third term, the government may increase the limit of 80C to Rs 2 lakh.
The limit of 80C was increased in 2014
In 2014, the then Finance Minister Arun Jaitley had increased the Section 80C benefit limit to ₹1.5 lakh per annum. This change was among the major reliefs given in the government’s first budget. However, there has been no change in the 80C limit since then. The 80C limit has remained the same for 10 years since the last increase in 2014. Every year, many taxpayers hope that the Finance Minister will increase the Section 80C limit in the Union Budget 2024. Many believe that the 80C limit has not increased in line with income and costs, due to which many taxpayers use the entire 80C limit to save tax.
Why should the 80C limit be increased?
A person’s taxable income is calculated by subtracting 80C deductions from his total income. Any change in the Section 80C deduction limit directly affects a person’s taxable income, which will directly benefit taxpayers. Many people’s costs have increased, salaries have increased, but there has been no increase in the benefits of Section 80C. Due to this, many people take full advantage of 80C. That is why increasing the limit in Section 80C is always the first priority for taxpayers before the budget every year.
