Income Tax News: You should be familiar with Section 80C of the Income Tax if you also file an ITR (ITR Return File) each year. You can receive an investment reimbursement of up to Rs 1.5 lakh under this provision. For the past few years, there has been a call from tax professionals and taxpayers to raise the Section 80C cap.
ICAI’s Recommendation for PPF Limit Increase
In addition, the government was advised by ICAI in its pre-Budget 2023 report to raise the Public Provident Fund (PPF) deduction allowed under Section 80C from Rs 1.5 lakh to Rs 3 lakh. The administration has made clear its stance on raising the 80C limit now that the deadline for filing ITRs expired on July 31.
The Finance Ministry states that no proposal to raise the exemption threshold under Section 80C of the Income Tax Act of 1961 is presently being considered. Currently, section 80C allows for the deduction of annual contributions up to Rs 1.5 lakh made to a variety of tax-saving programmes, including house loans and life insurance policies.
Comprehensive Overview of Section 80C Tax-Saving Schemes
Section 80C allows for the deduction of tax-saving schemes such as PPF, EPF, NSC, NPS, SCSS, 5 year FD in banks and post office, ELSS Mutual Fund, and others. In a written response to a question in the Lok Sabha on July 31, Union Minister of State for Finance Pankaj Choudhary stated that as a result, no proposal to expand the exemption under Section 80C of the Income Tax Act is being considered.
Government’s Approach Towards Small Savings Schemes
“Has the government taken steps to streamline small savings schemes in light of the changing economic environment and interest rate scenario?” was the question that the minister of state for finance was answering and agreed that the Income Tax Act’s Section 80C exemption needed to be expanded and made simpler. We would like to inform you that in 2023–2024, a record 6.77 crore ITRs were filed.
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