The first Union Budget 2025 of the third term of the Modi government may bring good news for the taxpayers. According to reports, Finance Minister Nirmala Sitharaman may announce increase in the tax deduction limit of Section 80C from the current ₹1.5 lakh to ₹3 lakh in the upcoming budget.
This change will prove beneficial for taxpayers choosing the old tax regime, because this facility is not available in the new tax regime. However, these are just possibilities, but if this happens then it will be a big relief for crores of taxpayers of the country.
Section 80C: When was the limit increased last time?
- in 2014: then finance minister Arun Jaitley increased the limit of section 80C Increase from ₹1 lakh to ₹1.5 lakh Had done.
- last a decade There has been no change in this limit since.
- Taxpayers have been demanding for a long time that the 80C limit should be increased keeping in mind the rising costs and income.
What is the benefit of Section 80C?
Section 80C To taxpayers under ₹1.5 lakh up to tax deducted Get the benefit of.
It includes the following investments and expenses:
- PPF (Public Provident Fund)
- ELSS (Equity Linked Saving Scheme)
- life insurance premium
- NSC (National Savings Certificate)
- children’s tuition fees
- this feature Individual and Hindu Undivided Family (HUF) Available for.
Why should 80C limit be increased?
- Inflation:
- Rising inflation in the last 10 years has put additional burden on taxpayers.
- The change in 80C limit will provide relief in their expenses.
- Increase in Income:
- Despite rising wages and costs, the tax exemption limit was not changed.
- The new limit will give taxpayers the opportunity to save and invest more.
- Direct Benefits:
- Taxpayers will be affected by increasing the limit taxable income Will be reduced, due to which they will get direct financial relief.
Taxpayers’ expectations from Budget 2025
Finance Minister Nirmala Sitharaman On 1 February 2025 union budget Will present. Taxpayers can expect the following major changes:
- 80C limit: Increased from ₹1.5 lakh to ₹3 lakh.
- Increase in tax exemption: Motivation to invest more in savings schemes.
- Old Tax Regime: New features to make it more attractive.
If 80C limit is increased, it will not only be a relief for taxpayers but will also be considered a big step by the government to promote savings and investment.
