You will be familiar with Section 80C of the Income Tax if you also file an ITR (ITR Return File) each year. You can receive a tax credit of up to Rs. 1.5 lakh under this provision. Since a few years ago, taxpayers and tax professionals have been calling for an increase in Section 80C’s cap. Additionally, the ICAI recommended that the government increase the Public Provident Fund (PPF) deduction under Section 80C from Rs 1.5 lakh to Rs 3 lakh in the Pre-Budget 2023 report.
ITR filings were due on July 31.
The administration has clarified the situation of raising the limit of 80C now that the deadline for filing ITR has passed on July 31. The Finance Ministry reports that there is no proposal to raise the exemption threshold under Section 80C of the Income Tax Act of 1961 under consideration. Currently, section 80C allows for a deduction for annual investments up to Rs 1.5 lakh made under a variety of tax-saving plans like home loans and life insurance policies.
Increase in exemption under 80C proposal not being taken into consideration
PPF, EPF, NSC, NPS, SCSS, 5-year FD in banks and post offices, ELSS Mutual Fund, etc. are tax-saving programs for deduction under section 80C. Therefore, Pankaj Chowdhary, Union Minister of State in the Ministry of Finance, stated in a written response to a question in the Lok Sabha on July 31 that there is no proposal being considered to enhance the exemption under section 80C of the Income Tax Act.
In response to the inquiry
“Has the government acknowledged the need to streamline small savings schemes and simplify and enhance exemption under section 80C of the Income Tax Act in light of the changing economic environment and interest rate scenario?,” the Minister of State for Finance gave a positive answer. We’d like to let you know that a record 6.77 crore ITRs were filed in the 2023–2024 fiscal year.
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