Section 80C Limit: Govt will increase section 80C limit under old tax regime budget 2024 ? Check Here

Budget 2024 Section 80C Limit: Modi authorities can provide excellent news to crores of taxpayers in its third time period. The authorities can increase the limit of 80C from Rs 1.50 to Rs 3 lakh. Many taxpayers select Section 80C as their most popular tax saving choice.

Modi authorities can provide excellent news to crores of taxpayers in its third time period. The authorities can increase the limit of 80C from Rs 1.50 to Rs 3 lakh. Many taxpayers select section 80C as their most popular tax saving choice. Under Section 80C of the Income Tax Act 1961, if people go for the old tax regime, they’ll avail a most deduction of Rs 1.5 lakh for the monetary 12 months 2024-25. Those who go for the brand new tax regime will not be eligible to avail this deduction.

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The limit was elevated within the 12 months 2014

In 2014, the then Finance Minister Arun Jaitley elevated the 80C profit limit to Rs 1.5 lakh every year. This change was one of many main types of aid given by the federal government in its first budget. However, there was no change within the 80C limit since then. This marks a decade because the final increase in 2014. Every 12 months many taxpayers hope that the Finance Minister will increase the Section 80C limit within the Union Budget 2024. Many consider that the 80C limit has not elevated in step with earnings and prices. Due to this distinction, many taxpayers use all the 80C limit to avoid wasting tax.

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What is the good thing about Section 80C?

The most tax deduction allowed to taxpayers under Section 80C is Rs 1.5 lakh. However, taxpayers can put money into a number of financial savings schemes to avoid wasting tax. Deductions under Section 80C can be found solely to people and Hindu Undivided Families (HUFs). Taxpayers can declare deductions for investments in financial savings schemes or for funds of investments and bills falling under the 80C class.

Why ought to the Section 80C limit be elevated?

An individual’s taxable earnings is calculated by deducting the 80C deduction from his whole earnings. Any change within the Section 80C deduction limit straight impacts an individual’s taxable earnings. Taxpayers will get the direct good thing about this. The price of many individuals has elevated. Salaries have elevated, however the advantages of Section 80C haven’t stored tempo. Due to this, many individuals take full benefit of 80C. That is why rising the limit in Section 80C is all the time the primary precedence for taxpayers earlier than the budget yearly.

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