Forward of the announcement of Union funds 2023, scheduled for 11 am on Wednesday, salaried professionals are, as all the time, trying ahead to earnings tax-related bulletins in finance minister Nirmala Sitharaman’s speech. Final 12 months’s funds had left taxpayers upset, as no new earnings tax-related announcement was made.
Watch: Price range 2023: Huge aid for taxpayers ; No tax for earnings as much as ₹7 lakh | Verify revised charges right here
Click on right here for full protection of Price range 2023
This 12 months, due to this fact, professionals are once more ready with bated breath for the finance minister’s tackle, which assumes significance additionally as a result of that is the final full funds of the Modi authorities, forward of the April-Could 2024 Lok Sabha polls. And, one of many main calls for, as seen on social media, is over Part 80C of the Revenue Tax Act, with netizens calling for a rise in exemption restrict beneath Part 80C.
This is all it’s essential to find out about Part 80C of the Revenue Tax Act:
(1.) It got here into impact on April 1, 2006, and is without doubt one of the hottest sections of the Revenue Tax Act. It’s because it permits taxpayers to cut back their taxable earnings; this they will do by making tax-saving investments, or by incurring eligible bills.
Click on right here for dwell protection of Finance Minister’s speech
(2.) A successor to the now-defunct Part 88, this part permits for a most deduction of as much as ₹1.5 lakh per 12 months from a citizen’s complete wage throughout a monetary 12 months. As much as 2014-15, the utmost restrict was capped at ₹1 lakh.
Observe earnings tax-related bulletins right here
(3.) The deductions, nevertheless, will not be relevant when you select to pay tax beneath the brand new regime, which got here into impact on April 1, 2020 (beneath the prevailing system, a person can select between the previous and new regime).
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(4.) To avoid wasting tax, the next funding choices can be found beneath Part 80C: Nationwide Pension System (8-10% charge of curiosity), Fairness Linked Financial savings Scheme (12-15%), Public Provident Fund (7.1%), Senior Residents Financial savings Scheme (7.4%), Nationwide Financial savings Certificates (6.8%), Unit Linked Insurance coverage Plan (8-10%), Fastened Deposit (As much as 8.4%), and Sukanya Samriddhi Yojana (7.6%).
Additionally Learn | Price range 2023: Will govt change PPF funding restrict? What about earnings tax slab?
(5.) Part 80C is additional divided into varied sections. Additionally, solely people and Hindu Undivided Households (HUFs) can declare deductions beneath it.
Watch: Price range 2023: Huge aid for taxpayers ; No tax for earnings as much as ₹7 lakh | Verify revised charges right here