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6/20/2014

Raise 80C deductions to Rs 2.5 lakh, says CII.

Moneycontrol Bureau: The Confederation of Indian Industries, in its pre-Budget wish list to the Finance Ministry, has suggested that the consolidated deduction under Section 80C be raised to Rs 2.5 lakh from the current Rs 1 lakh. Currently, a total Rs 1 lakh in all long term and short term saving instruments including Provident Fund, Pension Fund is exempt from tax. The CII wish list has also recommended that a separate section for tuition fees be provided over the limit prescribed under Section 80C since tuition fee does not fall into the category of investments. At present Section 80C covers expenditure on tuition fees paid for the education of children, but within the limit of Section 80C. Among other suggestions, the industry body has said that deduction on interest income earned on savings bank accounts, should be raised to Rs 25,000 from Rs 10,000 at present Also, CII has recommended that deduction of interest on housing loans upto Rs 1.5 lakh under Section 24 for self-occupied property should be increased to Rs 5 lakh. Source:Moneycontrol