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INCREASE TAX EXEMPTION LIMIT U/S 80C

polad-Manager Accounts (Accounts Tax Finance Stocks) (411 Points)

03 February 2010

Dear Mr Finance Minister,

Currently U/S 80C exemption limit is Rs 1Lakh. If that is increased without touching the basic exemption limit to Rs 3 Lakh, the vast middle class will save more by Rs 2Lakhs to save individual tax, which in return is a huge opportunity for the govt to have such funds be invested in various agricuture, industry, power & infrastructure projects.

Think? Think? Fast$$ FASTER$$

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2 Replies

C.Balaji (Learner) (1867 Points)
Replied 03 February 2010

Mr.Polad

do you think the amount are (i.e.at present 1 lac) is utilised properly by the govt. for the development of areas which u have mentioned???

i don't think so...

regarding increase of 80c ....mmmmm i don't feel much difference!!!!!!

Max Payne (employed) (2569 Points)
Replied 03 February 2010

3 lakhs is too high in my opinion.

The propensity to consume is quite high so there is no way common salaried man is going to save so much.

Rather than simply pushing up the limit, other items could be brought into the section 80C, like may be interest on a 2 wheeler... we'll save our roads and resources with that.....

I'd also suggest that the exemptions under different sections be brought back for salaries, instead of simply increasing GTI and then reducing it with 80C... 3 lakhs under 80C is just pro-rich... FBT can come back too....