Is 80c Limit Increased?

When was 80c limit increased?

Limit for deduction under Section 80C of the Income Tax Act, 1961 has been enhanced from Rs 100,000 to Rs 150,000 in the Union Budget 2014.

Enhanced deduction is applicable from Assessment Year 2015-16 corresponding to Financial Year 2014-15..

Why was 80c removed?

Experts say the new tax regime may not be suitable for everyone. … “Those committed to long-term saving and investing via Section 80C may be discouraged and this may likely demotivate taxpayers to opt for tax-saving linked investing, like in ELSS and PPF.”

What is the 80c limit for 2020 21?

Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens. Section 80DD: ₹ 75,000 for disabled dependent or ₹1,25,000 for severely disabled dependent.

Is 80ttb part of 80c?

50,000/- under section 80TTB available to senior citizens is over and above deduction up to Rs. 1,50,000 available under section 80C? Ans. Yes, it is over and above the limit of Rs 1.5 lakhs u/s 80C.

Is house rent under 80c?

For most employees, House Rent Allowance (HRA) is a part of their salary structure. Although it is a part of your salary, HRA, unlike basic salary, is not fully taxable. Subject to certain conditions, a part of HRA is exempted under Section 10 (13A) of the Income-tax Act, 1961.

What is the 80c limit for 2019 20?

First you can claim standard deduction of Rs 50,000 for FY 2019-20. You can invest Rs 1.5 lakh under section 80C in any of the eligible tax saving avenues. You can also invest Rs 50,000 under section 80CCD (1B) in the National Pension Scheme.

What is the maximum limit under 80c?

Rs 1.5 lakhAs per the current income tax laws, the total investment amount under sections 80C, 80CCC and 80CCD (1) cannot exceed Rs 1.5 lakh for FY 2019-20. If your employer has made a contribution to National Pension System (NPS) on your behalf, then, you can claim deduction under section 80CCD(2).

Will 80c limit increase in 2019?

Section 80C limit due for a raise in Budget 2019 The Industry chamber CII has also urged the government to increase the 80C limit to Rs 2.50 Lacs. An increase in section 80C limit will help provide more room for tax saving.

What is 80c in new budget?

The overall exemption limit under section 80C should at least be enhanced to Rs 3 lakh, from the current Rs 1.5 lakh. Similarly, while increasing the limits under 80C, concurrently the limit of investment under PPF may also be increased.

Is 80c removed?

Most of the commonly available deductions such as section 80C (investments made in PF, NPS etc.), 80D (payment of medical insurance premium), standard deduction of Rs 50,000 etc. have been proposed to be removed but here is one tax benefit that can still be claimed by the individuals under the proposed new tax regime.

What is the new income tax slab?

Income from Rs 300,001 to Rs 5 lakh is taxed at 5 per cent, from Rs 500,001 to Rs 10 lakh at 20 per cent and above Rs 10 lakh at 30 per cent. For super senior citizens, aged 80 years and above, income up to Rs 5 lakh is exempt from tax.

How can I reduce my income tax in India?

In this article, we cover all the major tax deductions under the Income Tax Act:Use up your Rs 1.5 lakh limit under Section 80C. … 2) Contribute to the National Pension System. … 3) Pay Health Insurance Premiums. … 4) Get a deduction on your rent.5) Get a deduction on the interest on your home loan.More items…•