Taxes in 2023: Income tax exemption limit under 80C is expected to be increased from Rs 1.5 lakh to Rs 2.5 lakh. At the same time, the possibility of increasing the limit of PPF investment is also being expressed.
Taxpayers are expected to get big relief from the Union Budget 2023. People get income tax exemption under 80C in other investment schemes including small savings schemes. Its limit is Rs 1.5 lakh, which is expected to be increased to Rs 2.5 lakh. At the same time, the possibility of increasing the limit of PPF investment is being expressed. Because, for the last several years, the income tax exemption and investment limit limit has not been increased, due to this the Modi government may decide to increase the limit in this budget.
Demand to increase the limit of income tax deduction to 3 lakhs
The Institute of Chartered Accountants of India (ICAI) in its Pre-Budget Memorandum 2023 has suggested that the tax deduction limit under Section 80C of the Income Tax Act 1961 should be increased from the existing Rs 1.5 lakh to Rs 2.5 lakh in Budget 2023. ICAI said that the increase in the deduction limit of section 80C will provide large scale savings opportunities to the public.
Investors will get benefit if 80C limit is increased
Increasing the limit of Section 80C of the Income Tax Act will benefit the most small savings schemes, insurance policy buyers, mutual fund investors, loan holders investors and senior citizens. Along with the industry, investors have been demanding to increase it for a long time. Last time this limit was increased from Rs 1 lakh to Rs 1.5 lakh in the financial year 2014-15. Since then this deduction limit has not been changed.
PPF investment limit expected to increase in budget 2023
ICAI has also suggested increasing the annual limit of contribution to Public Provident Fund (PPF) from the existing Rs 1.5 lakh to Rs 3 lakh in Budget 2023. ICAI, while reasoning behind the demand for increasing the maximum contribution limit under PPF, said that PPF is used as a means of savings by entrepreneurs and professionals. Matching contribution from employers is the only safe and tax efficient savings option available to oneself. That’s why it is necessary to increase it. At the same time, the current limit has not been increased for many years.
