Besides the usual slab change for the highest slab which has been maintained as though since 2012-13, there has been a call made for additional rebate in section 80C which currently offers benefit of upto Rs. 1.5 lakh per annum i.e. lessens one's taxable income by this amount in case of some allowed investments or expenses such as different post office schemes, life insurance policies, principal repayment on housing loan, tution fee etc.
What common man expects in respect of Section 80C from Budget 2020
As per experts, being the current cap of Rs. 1.5 lakh being very small, investors are not provided considerable scope to diversify their investment portfolio and consider other beneficial investment offers. Also, as the inflation which for the month ended December i.e. CPI is even expected to breach 6% levels, there is a need to up one's savings and investments that can be to an extent be increased through tax savings on them. So, the government can consider revising this limit to Rs. 2 lakh from the current Rs. 1.5 lakh.
Also, for the salaried this rebate of Rs. 1.5 lakh gets easily exhausted with respect to mandatory contribution in EPF and hence people could think of channelizing more of their funds in better investment avenue.