In a statement issued on Friday, the Finance Ministry announced that the Central Board of Direct Taxes (CBDT) has notified ITR Forms 2, 3, 5, and 6 for filing Income Tax Returns (ITR) for the assessment year 2024-25. This notification was made on January 31, 2024. Additionally, ITR-1 has already been notified by the Income Tax Department. The CBDT mentioned that these forms have been revised for the convenience of taxpayers and to simplify the process of filing income tax returns. All ITR forms, from 1 to 6, have been notified for filing ITR, and they will come into effect from April 1, 2024.
New Limit of Section 80C in Income Tax
In the Budget 2024 speech, the Finance Minister stated that there was no change in the Section 80C tax deduction limit. The maximum limit for claiming tax benefits under Section 80C for the current financial year 2023-24 remains Rs 1.5 lakh. Finance Minister Nirmala Sitharaman presented the interim budget on February 1. It was expected in this budget that there could be some changes in the tax slabs; however, this did not happen. Let us now discuss what the maximum tax exemption you can avail of under Section 80C is.
What is Section 80C of Income Tax?
Section 80C of Income Tax stipulates that certain investments and expenses are exempted from income tax. A person can reduce their taxable income by up to Rs 1.5 lakh every year. It’s important to note that Section 80C of Income Tax offers various types of exemptions. However, it’s crucial to remember that the benefit of exemption on investment under Section 80C is available only in the old tax system and not in the new tax system.
Exemption Available Under Section 80C of Income Tax
You can save tax up to Rs 1.5 lakh in a financial year under EPF, PPF, Equity Linked Saving Scheme, Mutual Fund, Sukanya Samriddhi Yojana, National Saving Certificate, 5-year Fixed Deposit Scheme, National Pension System, Senior Citizen Saving Scheme under Section 80C. Additionally, under Section 80C of the Income Tax Act, a person can also claim tax exemption on expenses such as school fees for two children, home loan payments, insurance premiums, etc.
Also Read: Comparing New vs. Old Tax Systems: Which is Better? Switching Process Explained !