Modi government can give good news to crores of taxpayers in its third term. The government can increase the limit of 80C from Rs 1.50 to Rs 3 lakh. Many 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 Rs 1.5 lakh for the financial year 2024-25. Those who opt for the new tax regime are not eligible to avail this deduction.

The limit was increased in the year 2014

In 2014, the then Finance Minister Arun Jaitley increased the 80C benefit limit to Rs 1.5 lakh per annum. This change was one of the major forms of relief given by the government in its first budget. However, there has been no change in the 80C limit since then. This marks a decade 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 this difference, many taxpayers use the entire 80C limit to save tax.

Also Read: Top 10 countries with the most ultra wealthy individuals

What is the benefit of Section 80C?

The maximum tax deduction allowed to taxpayers under Section 80C is Rs 1.5 lakh. However, taxpayers can invest in one or more savings schemes to save tax. Deductions under Section 80C are available only to individuals and Hindu Undivided Families (HUFs). Taxpayers can claim deductions for investments in savings schemes or for payments of investments and expenses falling under the 80C category.

Why should the Section 80C limit be increased?

A person’s taxable income is calculated by deducting the 80C deduction from his total income. Any change in the Section 80C deduction limit directly affects a person’s taxable income. Taxpayers will get the direct benefit of this. The cost of many people has increased. Salaries have increased, but the benefits of Section 80C have not kept pace. 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 Section 80C Limit: Govt will increase section 80C limit under old tax regime budget 2024 ? Check Here first appeared on Rightsofemployees.com.

Income Tax Saving Option: The financial year is about to end. Everyone is planning to save as much tax as possible. To save income tax, salaried class invest under Section 80C of Income Tax. By investing in this, you get tax relief on income up to Rs 1.5 lakh. But if even after this your tax is due, then you can save your tax by investing under other sections of income tax. If you are also thinking about tax saving options other than 80C, then we give you information about it.

NPS will save tax

If your limit under Section 80C has been exhausted and you want to save tax, then do not worry. You can save tax up to Rs 50,000 by investing in the National Pension Scheme (NPS). This investment is in addition to the limit of Rs 1.5 lakh under section 80C. This means that you can save tax on total income up to Rs 2 lakh.

Exemption on Health Insurance:

If you pay health insurance premium for your family, you can get tax exemption on it. Under Section 80D, you can invest up to Rs 25,000 on the health insurance premium of yourself, spouse and children. Apart from this, if the age of your parents is less than 60 years, then you can pay a premium of up to Rs 25,000 for health insurance. But if your parents are senior citizens then this limit is up to Rs 50,000.

Exemption available on health checkup:

Do you know that you can also get tax exemption on getting a health checkup done? Under Section 80D, you can take deduction on the expenses incurred on investigation. Every year you can claim a maximum deduction of Rs 5,000. This amount comes within the limit of total deduction given under section 80D.

Exemption on interest on savings account

Under section 80TTA, individual taxpayers and Hindu Undivided Families (HUFs) (to whom section 80TTB does not apply) are entitled to a deduction on interest income from savings account opened in a bank, post office or co-operative society. The benefit of maximum tax deduction up to Rs 10,000 is available in the financial year.

Exemption available on donation:

If you have donated funds to someone under Section 80G, then you can claim deduction on the donated amount. But it should be kept in mind that the amount of this donation should not be more than 10% of the total income. This deduction is also available on donations made for the renovation of temples, mosques and churches approved by the Central Government.

RBI Penalty on Banks : RBI again imposed fine of crores on banks, check the list if your bank is included

The post Income Tax : Opportunity to save tax till 31st March, there will be exemption not only in Section 80C but also on investing here. first appeared on Rightsofemployees.com.