Union Budget 2021-22
Union Budget 2021: If the limit of tax deduction claim is increased in section 80C of the Income Tax Act in the budget, then people will like to choose the option in Public Provident Fund (PPF), NSC and LIC to claim deduction.
- January 22, 2021, 9:51 AM IST
This thing has come out from a Twitter poll. It is worth noting that deduction up to Rs 1.50 lakh can be claimed through investment in tax saving options valid under Section 80C.
60 percent people chose PPF
FE Online has revealed through a poll on Twitter that if the Finance Minister increases the limit of Section 80C to Rs 3 lakh in the budget, then 60% will choose PPF to claim deduction, 20% chose Life Insurance Policy (LIC) Showed interest in investing in At the same time 10-10 percent participants were found in home loan and post office schemes / NSC.Also read: Budget 2021: More salary can come in your hands if you work from home, know how
These are the expectations from budget 2021
Section 80C is the most popular way to get tax exemption under the Income Tax Act. Currently under Income Tax Act 80CCE, income under Section 80C, 80CCC and 80CCD (1) is exempt from income tax on a total income of Rs 1.50 lakh a year. People are expecting the finance minister to increase it to Rs 3 lakh.
What are the features and advantages of PPF
You have to invest at least 500 rupees every year in PPF and in this you can invest up to Rs 1.5 lakh in every financial year. This is a pure date product. Since it is supported by a sovereign guarantee, there is no credit risk on the investment made in it. In PPF, tax benefit is available on the basis of the limit applicable under Section 80C of the IT Act. The best thing is that the income tax is waived on the investment amount, interest, and maturity amount.
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When does PPF mature
The maturity period of PPF is 15 years but after the completion of 6 years partial withdrawal is allowed with some restriction. On the other hand, PPF investment can be extended for a further 5 years even after completion of the 15-year maturity period where investors have the option to invest freshly or to remain invested and earn interest without having to invest freshly. is.