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 may 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 the 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 opting for the old tax regime enjoy the benefit 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 increased?
The Section 80C limit was last increased in 2014, when then Finance Minister Arun Jaitley increased it from Rs 1 lakh to Rs 1.5 lakh. This change was a major part of the government’s first budget. However, there has been no change in this for the last decade. Taxpayers have been expecting for a long time that the 80C limit will be increased to provide relief as per 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 through various saving schemes like PPF, ELSS, life insurance, NSC and children’s tuition fees. This deduction is available only to individuals and Hindu Undivided Family (HUF).
Why should 80C limit be increased?
The change in section 80C limit reduces the taxable income of taxpayers, thereby directly benefiting them. Despite rising costs and rising salaries over the years, there has been no change in the 80C limit. This leaves many taxpayers feeling the need to save their taxes by utilizing the full limit.
What are the expectations from Budget 2025?
The Finance Minister will present the Union Budget on 1 February 2025. Taxpayers are hopeful that the 80C limit will be increased to Rs 3 lakh, giving them more flexibility in their investments and savings. If this happens, this step from the government will prove to be a big relief for the taxpayers.
New Year Celebration: Exemption for full night party in Maharashtra, Delhi hotels, clubs and