Budget 2026: 80C Limit Unchanged, Taxpayers Face Planning Shift
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News18•01-02-2026, 14:54
Budget 2026: 80C Limit Unchanged, Taxpayers Face Planning Shift
- •Budget 2026 confirms no increase in the Section 80C deduction limit, remaining at Rs. 1.5 lakh.
- •Finance Minister Nirmala Sitharaman clarified the decision, disappointing many who hoped for an increase after years.
- •The 'Income Tax Act, 2025' will simplify rules, effective April 1, 2026.
- •The unchanged 80C limit significantly impacts middle-class employees, as common expenses quickly exhaust the deduction.
- •The government's strategy appears to encourage a shift towards the new tax regime, which offers lower rates without deductions.
Why It Matters: The 80C limit remains at Rs. 1.5 lakh, pushing taxpayers to re-evaluate their tax planning for FY 2026-27.
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