Budget 2024: Big tax relief for middle-class in the offing? Section 80C, 80D deduction limits may be hiked to …
Modi 3.0 Budget: The Narendra Modi-led NDA government will present next month its first budget of the third term, which began after 72 members from the BJP and its alliance parties took oath as Cabinet and junior ministers. Nirmala Sitharaman’s finance portfolio has not been changed, paving the way for her to present her 6th full-fledged Union budget in July. She also presented the interim budget in February this year ahead of the Lok Sabha polls 2024.
After the new government formation, the focus is now shifted to the Union Budget 2024-25. Taxpayers are hopeful that the Modi government will give them a tax relief in the upcoming budget. Experts too are of the view that FM Sitharaman would at least make some revision in deduction limits under Section 80C and 80D.
The last time the government revised the Section 80C deduction limit was in Union Budget 2014-15, raising the threshold of tax benefit under this Section to Rs 1.5 lakh to Rs 1 lakh then. For middle-class taxpayers, 80C is the most crucial section in terms of deduction benefits. Under Section 80C, taxpayers get tax benefits on investments like PPF, NPS, small savings, life insurance, ELSS, ULIPs, home loan principal repayment and several others.
Also read: Taxpayers to face higher tax outflows if Direct Tax Code gets implemented post Lok Sabha polls 2024
Section 80C deduction limit insufficient
The existing deduction limit of Rs 1.5 lakh under Section 80C is widely seen as insufficient by taxpayers in light of rising inflation and financial responsibilities. Therefore, taxpayers and tax experts both are hopeful that the upcoming budget will introduce some major changes as far as direct taxation is concerned.
“Reforms that benefit the middle class, such as
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