The tax collections have been very buoyant in the current fiscal year and if the economic growth continues, the finance minister can expect a further boost next year too. Therefore, the FM could consider raising the limit under section 80C without seriously affecting the tax collections.
Besides, the Rs 100,000 limit is proving to be too less from the point of view of inducing long-term saving through tax benefits. Rising salaries mean higher provident fund deduction; premium payments on the legacy of insurance policies; clubbing of Rs10,000 under section 80CCC with section 80C; large home loans resulting in large repayment of principal - all this leaves very little room, if any, for further saving.
Therefore, a raise in the limit would be very welcome to make meaningful saving for the long-term.
No comments:
Post a Comment