Reserve Bank Governor inclined to increase the tax exemption limit
Posted on: 05/Feb/2015 11:33:54 AM
Investments of up to Rs 1.50 lakh in public provident fund, provident fund, new pension scheme, insurance policies and equity-linked saving schemes are deducted from the taxable income under Section 80C of the Income Tax Act. Now Reserve Bank Governor Raghuram Rajan on Wednesday is all out for increasing the tax exemption limit on financial investments by individuals from Rs 1.50 lakh a year.
Reserve Bank Governor Raghuram Rajan said, "Remember the government increased the limit for tax benefit in savings by Rs 50,000 in the last budget. The question is - is there room for more primarily because the real tax benefit has fallen over time because the limit was at Rs 1 lakh for a long time. Maybe what we have to do is increase that.�
