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Will Tax Deduction Limit Under Section 80C? Common people will get relief from these announcements

Relief is expected in the budget regarding personal tax.

Budget 2021 Income Tax Expectations: Experts and Individuals hope that Finance Minister Nirmala Sitharaman can increase the income tax deduction limit under Section 80C of the Income Tax Act in the upcoming budget. This limit can be increased to Rs 3 lakh. Currently, the deduction can be availed on investment up to Rs 1.5 lakh under this section 80C. Under Section 80C, the tax benefit can be taken for an amount up to Rs 1.5 lakh in PPF, five-year bank FD, provident funds, life insurance premium etc. The budget for the financial year 2021-22 will be presented on 1 February.
Ankit Sehra, founder and tax expert of Ankit Sehra & Associates, believes that deduction limit under section 80C can be expected to be increased to Rs 3 lakh in the upcoming budget. According to Sehra, this will increase investment and the economy will also expand.

Separate deduction on life insurance and pension scheme

Sehra hopes that the government will bring special rules for long-term savings and short-term savings. He says that at present there is no such tax policy that will encourage long-term savings schemes. Increased investment in long-term savings plans will help the economy recover from the Corona epidemic. Life insurance and pension funds are the main sources of long time savings. According to Sehra, this time in the budget, for these two, you can consider the Exception Limit separately from Section 80C.

Demand to increase the exemption limit for a home loan

According to Yes Securities, the limit of section 80C in the budget can be increased to Rs 2.5 lakh. Yes Securities hopes that the government can introduce policies to boost real estate demand in which the exemption limit can be increased on the principal repair of home loans. Yes Securities says that the exemption in the principal repair of the home loan can be kept at par with the HRA limits for the salaried class.

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Expect relief from personal tax

Taxpayers hope that the personal tax can be relieved in the budget. A survey conducted by industry body FICCI and Dhruv Advisors found that about 40 per cent of the people in this budget are expecting personal tax relief indirect tax proposals. Apart from this, 47 percent people demand that the government increase the slab of direct taxes. In the survey, people were asked about taxation, what kind of problem they are facing in the current taxation system and what kind of relief they should get from the government in the budget. Survey results found that 52 percent of the people are facing problems in getting refunds on time and 49 percent of people have problems with tax compliance and 43 percent of people have problems with taxi litigation.

Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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