Budget 2014 – Tax exemption limit under section 80C to be increased?
As the date for presenting Budget 2014 is coming close which is 10th of July 2014, the eyes are stuck on our new Finance Ministry of our new hopefully efficient government.
Mr. Arun Jaitley will have to present the new Budget 2014 in Lok Sabha and expectations are increasing with each day passing. Everyone, common people, businessman, workers waiting to see what does our new budget say and depict so that the new ruling government’s ideas are seen by the people.
Mr. Narendra Modi government created a lot of buzz within the people and within the country and now budget has been in the talks continuously.
There is new news in the market related to the budget 2014 which is that the tax exemption for investments has been doubles i.e. the limit has been raised to 2 lakhs.
This is to be done in order to encourage household savings and investments.
Presently the tax exemption on investment was 1 lakh. Under section 80C, 80CC, 80CCC on income Tax Act.
The bankers and insurers have been provoking to increase tax exemption on investments and simply to encourage and increase savings and investments by households.
It has been proposed by Direct taxes Code that the ceiling for investments and expenditures should be increased up to Rs. 1.5 lakhs annually.
This announcement has been expected to make in the Budget 2014 being stated by Arun Jaitley on 10th of July.
There are various investment financial instruments on which tax exemption is valid such as public provident fund, national savings certificates, life insurance premium, employees provident fund, repayment of capital on home loan, equity linked saving schemes sold by mutual funds and bank FDs of five year maturity.
Let’s see what all is there in the upcoming Budget 2014.
The people of India have been expecting a lot from our new government.
