Tax exemption limit may be doubled in Union Budget 2014: Report

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Tax exemption limit may be doubled in Union Budget 2014: Report
The tax exemption limit on savings under Sec 80C instruments like PPF, LIC etc., may be doubled in the Union Budget 2014 according to news reports.

The NDTV reported that Finance Minister Arun Jaitley is expected to double exemption limit on long-term financial savings to ease tax burden on the middle class in his maiden budget on Thursday, quoting sources.

"Currently, the income tax exemption limit on such savings is capped at Rs. 1 lakh. Savings instruments such as housing loan repayment (principal), five-year and above tenure fixed deposits, provident funds (PFs) and life insurance policy premiums are some investment vehicles that qualify for tax exemption under Section 80C of the Income Tax Act," the report said.

Yesterday, another TV news channel reported that there may be no sops for the common man as the fiscal room to do do was limited. Will have to wait for the Union Budget on Thursday to see the final outcome.

Story first published: Tuesday, July 8, 2014, 11:16 [IST]
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