New Delhi,14 June: Delhi based apex trade association, Associated Chamber of Commerce and Industry of India(Assocham), has asked finance ministry to raise the limit of deduction under section 80C of the income tax from Rs. 1.5 lakh to Rs. 3.00 lakh in its Pre-budget Memorandum.
Assocham has also asked for the increased standard deduction, children’s education allowance, frequency of leave travel allowance and house rent allowance(section 80GG). The association has maintained that the exemptions and deductions for all these items are not in sync with present requirements, they are nominal and don’t offer any substantial benefit to taxpayers. They have suggested the limits for these items for applying the tax.
Financial Analysts are of the view that the acceptance of these demands will be a big relief to the assessee.
