26 August 2014
thanks for the reply. it is wrt to 80C. I have already invested 100000/- . In the budget the limit of 80C was increased to Rs.150000/- Hence my question, whether i can further invest RS.50000/- now .
01 August 2024
You can invest up to the revised limit under Section 80C of the Income Tax Act once the Finance Bill is passed and the new limit becomes effective. However, there are a few considerations:
### **Current Status and Investment Timing**
1. **Finance Bill and Tax Laws**: - The changes proposed in the Budget are not effective immediately. They typically come into effect only after the Finance Bill is passed by Parliament and receives Presidential assent. Until then, the existing limits apply.
2. **Existing Limits**: - For the financial year in which the Budget was presented, the old limit of ₹1,50,000 under Section 80C would generally apply until the new law is enacted.
### **Investment Strategy**
- **If the Finance Bill is not yet passed**: If you invest ₹50,000 now, it will fall under the existing limit of ₹1,00,000 (assuming the limit was ₹1,00,000 in the current financial year). Your total eligible deduction under Section 80C would be capped at ₹1,00,000.
- **If the Finance Bill is passed**: Once the Finance Bill is enacted, the limit under Section 80C will increase to ₹1,50,000. You can invest additional amounts up to the new limit and claim deductions accordingly.
### **Actionable Steps**
1. **Check the Status**: Monitor the status of the Finance Bill. If the increase in limit is officially enacted, you can then invest an additional ₹50,000 to utilize the higher limit.
2. **Plan Investments**: If you want to take advantage of the new limit and the Finance Bill is still pending, consider waiting until the new limit is officially in place before making additional investments.
3. **Consult Tax Advisor**: For personalized advice and to ensure compliance with the latest regulations, consult a tax advisor or financial planner.
### **Summary**
- **Invest Now**: You can invest ₹50,000 now, but only up to the current limit of ₹1,00,000 will be eligible for deduction. - **Wait for New Limit**: For maximum benefit, you might want to wait until the new limit of ₹1,50,000 is officially enacted before making additional investments.
Always ensure to keep track of the official updates on the Finance Bill and consult a financial advisor for the most accurate guidance.
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