The Income Tax Act of 1961’s section 80C advantage is highly valued by many taxpayers who want to save money on taxes. A benefit not accessible to people under the new tax regime is this clause, which permits individuals to claim a maximum deduction of Rs 1.5 lakh for the fiscal year under the old tax regime.
The CEO of Tata Pension Management, Kurian Jose, said that the latest increase in the 80C benefit cap to Rs 1.5 lakh occurred in 2014, which was over ten years ago. Because of this, a lot of taxpayers anxiously anticipate the Union Budget every year in the hopes that the Section 80C limit will be raised.
The full deduction amount is quickly depleted since the stagnating 80C limit cannot keep up with the growing earnings and spending of many taxpayers. Changes to the section 80C deduction ceiling immediately affect people’s taxable earnings, which in turn affects how much tax they owe overall.
Considering the difference between income growth and the static 80C benefit, a large number of taxpayers support raising the 80C ceiling annually before the budget.
People are hoping that the 2019 budget, which will be the first of the newly established NDA administration, will include tax breaks or assistance for middle-class taxpayers.
The next budget would serve as an effective record of the government’s far-reaching policies and future vision, as President Droupadi Murmu intimated in her maiden address to the joint session of Parliament since the formation of the 18th Lok Sabha. To make India the third biggest economy in the world, she added, the government would implement “many historic steps,” quicken the speed of economic reforms, and establish a roadmap for “far-reaching policies” and a “futuristic vision.”
