Nirmala sitharaman: TPF has demanded to increase income tax exemption from 2.5 lakh to 5 lakh, increase standard deduction to 1 lakh and limit investment in PPF to 3 lakh. Let us know how taxpayers can benefit from this?
Income tax exemption: Finance Minister Nirmala Sitharaman is going to present the budget on 1 February. In such a situation, different organizations have already started giving their suggestions and demands. One such demand has come from TPF. In which a memorandum has been handed over to Minister of State for Finance Pankaj Chowdhary, saying that a rebate of Rs 5 lakh should be given in income tax. Apart from this, the standard deduction should also be increased to Rs 1 lakh. There has been a demand from their side that the maximum investment limit in PPF should also be increased to Rs 3 lakh. More than 7000 Engineers, Doctors and Chartered Accountants are associated with Terapanth Professional Forum.
Standard deduction will increase to Rs 1 lakh!
TPF National President Pankaj Oswal has told that the demand to increase the standard deduction to Rs 1 lakh has been made by us. Let us tell you that at present this deduction is only 50 thousand rupees. If the government accepts this demand in the budget, then you can get tax relief. Standard deduction is the amount that is deducted directly from your salary. That is, if your annual income is 10 lakh rupees, then according to the existing rules, the government will consider your income as 9 lakh 50 thousand rupees. On the other hand, if this deduction is increased to Rs 1 lakh, then according to the new rules, the Income Tax Department will consider the income of Rs 10 lakh as Rs 9 lakh.
Will be able to invest more in PPF
There is no change in PPF till now. However, TPF has now demanded that the maximum investment limit in PPF be increased. Let us tell you that at present only Rs 1 lakh 50 thousand can be invested in PPF account in a financial year. TPF has demanded that it should be increased to Rs 3 lakh. Whatever amount is invested in PPF, it is exempted under Section 80C of the Income Tax Department Act. In this way, if the amount of investment is increased to Rs 3 lakh in this budget, then taxpayers will be happy because the entire amount becomes tax free on investing in this scheme.
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