Budget 2020 Expectations: With the Union Budget just a couple of weeks away, all eyes are now set on Finance Minister Nirmala Sitharaman’s second budget which is set to be presented on February 1. As the economy is going through some sort of crisis for some time now, there are expectations galore that the FM will do something for everyone, particularly the common man.
Taxpayers, particularly salaried, are hoping for some tax sops which will put more money in their pocket. While some taxpayers and tax experts want some changes in the income tax slabs and rates, others are pitching for a hike in the Section 80C deduction limit as the current limit of Rs 150,000 is not sufficient to meet the aam aadmi’s requirements.
However, before taking a look at their expectations, let us see what is Section 80C of the Income Tax Act.
What is Section 80C?
If your tax deductible expenditure or investment falls under the Section 80C of the Income Tax Act, 1961, then you will save the tax under this section. It allows you to save tax by making investments or expenditures under various categories.
At present, the deduction under Section 80C is available up to Rs 150,000. The eligible investments include life insurance policies, Public Provident Fund (PPF), National Savings Certificate (NSC), five-year notified tax-saving bank deposits and many more. One can invest the entire amount of Rs 1.5 lakh in one investment only or in more than one.
Main Source - Financialexpress