'Increase tax benefit limit under 80C of Income Tax'

By Brijesh Parnami,

"As Piyush Goyal had already made it clear that the government remains firm on its goal of maintaining fiscal balance so many changes are not expected in the forthcoming budgets. However, some exceptions to boost some sectors which need urgent attention could be done. To maintain the populist approach, Income tax rules could be further tweaked as it one of the most popular demand to increase the tax benefit limit under 80C of the Income Tax Act. An increase in the limit of tax exemption under Section 80C could benefit people with existing home loans. There could be an announcement regarding tax benefits for first-time homebuyers along with announcements to boost agriculture activities in the country. To continue its thrust on digitization, ease of doing business, online payments, etc. a charge on cash withdrawals from banks beyond a certain annual limit can be expected. There could be also some severe steps expected for tax defaulters and tax evaders.”

The author is CEO of Essel Wealth Services