Union Budget 2024: Can the government change the limit of Section 80C and 80D of Income Tax?

Union Finance Minister Nirmala Sitharaman will present the budget for the financial year 2024-25 on July 23. In today's time, the pace of inflation is increasing rapidly, in the meantime, salaried people are expecting relief from this budget. For the last few years, these people are hoping for tax exemption. For your information, let us tell you that there has been no significant change in tax slab, deduction, or exemption in the last few years. In such a situation, these people are expecting a change in the tax slab. Apart from this, it is expected that there may be a change in section 80C in this budget as well. Under Section 80C of Income Tax, you get the benefit of tax exemption of up to Rs 1.5 lakh by investing in schemes like Sukanya Samriddhi Yojana, EPF, PPF, National Savings Certificate, Equity Linked Savings Scheme, National Pension System, etc.

If media reports are to be believed, this time in the budget, the government can increase this exemption to two to three lakh rupees. This will benefit crores of taxpayers in the country. There has been no change in the Income Tax Act 80C for the last few years.

For the last few years, there was a demand to increase this tax exemption. In the pre-consultation meeting held before the budget, CA Institutes had demanded from Union Finance Minister Nirmala Sitharaman to increase the exemption available under 80C.

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Apart from this, tax exemption on the premium on health insurance under 80D can also be doubled. There has been no change in 80D for the last few years.

In the pre-consultation meeting held before the budget, CA Institutes had suggested to Union Finance Minister Nirmala Sitharaman to increase the exemption available under 80D. It is worth noting that in the last few years, the premium of health insurance is increasing at the rate of 10-25 percent every year. Therefore, to provide relief to the people, the government can increase the exemption available under 80D.

(PC: ISTOCK)