Important Income Tax Update: As the deadline for filing income tax approaches, the government is considering significant tax exemptions under section 80C. Taxpayers may soon enjoy an exemption of over Rs. 1.5 lakh while filing taxes. Stay tuned for more details on this government decision...
Additionally, for those familiar with Income Tax Return filing, Section 80C offers rebates of up to Rs. 1.5 lakh on investments. There has been a longstanding demand from taxpayers and experts to raise the limit of Section 80C. Stay informed
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.
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.