look news india
Income Tax News: If you also file ITR (ITR Return File) every year, then you will be well aware of Section 80C of Income Tax.
Under this section you get a rebate of up to Rs 1.5 lakh on investment. For the last several years, there has been a demand from taxpayers and tax experts to increase the limit of Section 80C.
Not only this, ICAI in its pre-Budget 2023 recommendation had suggested the government to increase the deduction given for Public Provident Fund (PPF) under Section 80C from Rs 1.5 lakh to Rs 3 lakh.
The last date for filing ITR was 31 July
Now that the last date for filing ITR has ended on July 31, the government has clarified the situation regarding increasing the limit of 80C.
According to the Finance Ministry, there is no proposal under consideration to increase the exemption limit under Section 80C of the Income Tax Act 1961. Currently, there is an annual investment of up to Rs 1.5 lakh in many tax saving schemes like home loan and life insurance policy. Eligible for deduction under section 80C.
Proposal to increase exemption under 80C not under consideration
Tax saving schemes eligible for deduction under Section 80C include PPF, EPF, NSC, NPS, SCSS, 5 year FD in banks and post office, ELSS mutual funds etc.
Thus, there is no proposal under consideration to increase the exemption under Section 80C of the Income Tax Act, Pankaj Chaudhary, Minister of State in the Union Finance Ministry, said in a written reply to a question in the Lok Sabha on July 31.
The Minister of State for Finance was replying to the question, 'Has the government taken steps to streamline small savings schemes in view of the changing economic environment and interest rate scenario?
And acknowledged the need to simplify and expand the exemption under Section 80C of the Income Tax Act. Let us tell you that a record 6.77 crore ITRs have been filed in the year 2023-24.