Tax exemption limit under 80C to be doubled in the Budget 2014
Posted on: 02/Jul/2014 10:53:49 AM
The Finance Ministry is considering doubling the exemption limit for investments by individuals in financial instruments to Rs 2 lakh. Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80 CCC of the Income Tax Act.The announcement is expected in the Budget. The Budget for 2014-15 will be presented by Finance Minister Arun Jaitley in the Lok Sabha on July 10.
There have been demands from bankers and insurers to hike the tax exemption limit from Rs 1 lakh per annum to encourage household savings. The hike in the exemption limit, sources said, would provide much needed relief to the salary earners who are reeling under the impact of high inflation.
