Budget 2025 and Income Tax: This time a mountain of expectations rests on Finance Minister Nirmala Sitharaman.
Middle class has been demanding to increase income tax slab in every budget, but this time there is a demand to increase the exemption under 80C. The reason is that due to GST, the common man to the middle class is paying the same tax on everything. Far from saving, people are blowing all the salary in running the house. In such a situation, the demand to increase the income tax limit and 80C exemption limit is gaining momentum. Under Section 80C of Income Tax, any person can claim a tax deduction on their taxable income to a limit of Rs 1,50,000. Let us first know which items can be exempted …
- Employee Provident Fund (EPF): Employees contribute about 12% of their basic salary to EPF funds. Therefore, all Emlai are eligible to cut this item.
- ELSS Fund (Equity-Link Saving Scheme): These are mutual fund schemes, which mainly invest in equity. Investment in these funds can be claimed as a deduction under Section 80C (under the supply of conditions).
- Infrastructure bonds: These are related to the infrastructure bonds sanctioned by the government, which are issued by special financial vehicles established for the development of infrastructure in the country.
- Life Insurance Premium: Whatever premiums are paid to take a life insurance policy, all are eligible as a deduction under this section.
- NSC – National Savings Certificate: This scheme is given by the Department of Posts. Taxable income can be cut on investment made under this scheme.
- Children’s tuition fees: Even tuition fees paid for any college or university in India can be deducted under Section 80C. Someone can take advantage of this deduction only for two children.
- Home Loan: If a person takes a home loan, then he can also take advantage of it.
- Post Office Fixed Deposit: These are 5-sight deposits given by the post office, which are eligible as a deduction under the investment section 80C.
These things should be removed from GST
The first full budget of Prime Minister Narendra Modi’s third term is going to be presented on February 1. Obviously, if the government increases the limit and income tax slab of this exemption, then the middle class will get relief. At the same time, the general public can also get relief by excluding food and drinking items from GST. Right now they are taxed at 5 to 18 percent. If the government removes both of them completely from GST, then the common man will get a lot of relief.
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