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.

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The post Budget 2025: Government may Increase Section 80C Limit More Tax Benefit to Taxpayers first appeared on Rightsofemployees.com.

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.

The post Budget 2024: 80C limit may increase to Rs 2 lakh, will it be announced in the budget? first appeared on Rightsofemployees.com.