New Delhi, Jan 4: Finance Minister Arun Jaitley may raise the tax break limit under Section 80 C from Rs 1,50,000 to Rs 2,00,000, a report said. The limit allows income tax exemptions for saving money in bank fixed deposits, insurance premium, and mutual funds for at least five years. Also Read - Uttar Pradesh: 19-year-old Woman Gang-raped While Returning From Navratri Event
If implemented, the move will encourage people to save more money in financial instruments than locking money in dead investments such as gold. Also Read - IPL 2020 Live Cricket Score RR vs SRH, Today's T20 Match 40 Between Rajasthan And Hyderabad Live Updates Dubai: Archer Removes Warner Early
Currently an individual tax payer could get tax break up to Rs 1,50,000 under Section 80 C of the Income Tax Act. The government extends the benefits to people under Sector 80C of the Income Tax Act for long-term savings such as provident fund, national savings certificates, five-year fixed deposits, home loans, children’s education, PPF and life insurance premium. Also Read - IPL 2020: Kagiso Rabada Says Cricket Has Given Him The Platform to 'Fight For The Right Causes'
This means if a person has an annual income Rs 20 lakhs and he/she invests in these financial instruments, the person’s income for tax computation will become Rs 18 lakh. Finance Minister Arun Jaitley had raised the exemption limit from Rs 50,000 to Rs 1.5 lakh when he presented his first budget as a finance minister.