Interim Budget 2019: Section 80C Deduction Limit May Increase From Rs. 1.5 Lakh

It is widely expected that interim Budget 2019 may be beyond the usual vote on account as has been indicated by the Finance Minister whose role has now been again taken over by Piyush Goyal. Jaitley earlier said that some of the issues cannot be deferred for a future course and need action now. And as widely expected, there are high hopes that tax slab will see a change with increase in tax exemption limit.

Interim budget 2019 is also most likely to see increase in section 80 C limit from the current Rs. 1.5 lakh in a financial year. This tax benefit is offered in lieu of some of the investments such as PPF, NSC, NPS etc and is extended to also some expenses such as the child's tuition fees, education and repayment of principal of housing loan etc.

The benefit is extended as either tax rebate or deduction and section 80C was re-introduced to offer added advantage for investment towards one or more avenues within the overall limit of Rs. 1,00,000. And the current limit of Rs. 1.5 lakh has been implemented from 2014, when the new government took charge.

So, with inflationary trend, the higher deduction limit under section 80C to Rs. 2 lakh may bring in a lot of cheer to the middle class who are struggling to save and savings rate may also thus trend higher, which otherwise is scaling down over the past 5 years period.

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