Section 80C Deduction Cap Increase: The government may raise the Section 80C Deduction Cap in this budget; stay informed

Section 80C Deduction Cap Increase: The government may raise the Section 80C Deduction Cap in this budget; stay informed

Section 80C Deduction Cap Increase: The government may raise the Section 80C Deduction Cap in this budget; stay informed

Budget 2024: The interim budget (Interim Budget 2024–25) will be presented by Finance Minister Nirmala Sitharaman this time. The cap may be raised by the government from Rs 25,000 to Rs 50,000. Senior persons may be eligible for an increase in this cap, which would go from Rs 50,000 to Rs 75,000.

Budget 2024: On February 1st, the nation's budget will be unveiled. Everyone is expecting big things from this budget, just as they do every year. This time, however, the interim budget for 2024–25 will be presented by Nirmala Sitharaman, the finance minister. There is a modest decrease in the likelihood of major announcements since the nation will be holding Lok Sabha elections this time around. In the meanwhile, tax relief is what the middle class and working people are yearning for. As usual, everyone is anticipated to get a tax exemption this time around as well.

This time, allow us to outline the public's expectations on taxes from the budget:

Cutoff temperature of 80C

Experts predict that this time around, the administration may raise the 80C limit in the budget. It is possible to enhance the amount of insurance premium that is covered under Section 80C. The cap may be raised by the government from Rs 25,000 to Rs 50,000. Senior persons may be eligible for an increase in this cap, which would go from Rs 50,000 to Rs 75,000.

Aside from this, analysts think the government will significantly expand the healthcare industry by enhancing the advantages of Section 80D of the new tax system.

The 80C threshold was raised ten years ago

Let us inform you that in 2014, the government raised the upper limit of Section 80C. The maximum amount allowed under this clause was just Rs 1 lakh up till the 2013–14 fiscal year. Nevertheless, it was raised to Rs 1.5 lakh in the 2014 budget. The last time this section's restriction was raised was ten years ago. Taxpayers and staff also anticipate that the government will raise this cap annually.

Processing TDS ought to be simplified

Experts state that 1% TDS is now withheld on the purchase of real estate valued at more than Rs 50 lakh. For local sellers, however, the procedure is rather simple. Additionally, it is very challenging for Non-Resident Indian (NRI) vendors.

Simplifying the capital gains tax is necessary.

In addition, investors now face a number of difficulties with respect to capital gains tax. This has a number of issues, including the tax rate, residence requirements, and holding time.