IT exemption under 80C may be raised to Rs 2 lakh
IT Exemption Under 80C May be Raised to Rs 2 lakh. Seeking to boost household savings, the finance ministry is considering doubling the exemption limit for investments by individuals in financial instruments to Rs 2 lakh.
New Delhi: Seeking to boost household savings, the finance ministry is considering doubling the exemption limit for investments by individuals in financial instruments to Rs 2 lakh.
Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80 CCC of the Income-Tax Act.
Sources said the revenue department was assessing the burden on the exchequer in case of increase in the benefit limit. The announcement is expected in the Budget.
The budget for 2014-15 will be presented by finance minister Arun Jaitley in the Lok Sabha on July 10.
There have been demands from bankers and insurers to hike the tax exemption limit from Rs 1 lakh per annum to encourage household savings. The savings rate has come down from over
38 per cent of GDP in 2008 to 30 per cent in 2012-13.
States alerted on drinking water
New Delhi: The Centre has asked the states to prepare a contingency plan on drinking water supply as it moves to deal with the drought-like situation in the country arising out of a deficit monsoon this year. The Centre's directive comes amidst reports of acute water shortage in many parts of the country due to the deficient rainfall in the wet season. According to a private forecasting agency, the national cumulative average for rainfall in June is deficient by a whopping 42 per cent, making it only the 12th instance in the past 113 years when the shortfall has been over 30 per cent in the month. States like Gujarat and Rajasthan are facing an over 80 per cent rainfall deficit.