Budget 2020: Public Provident Fund (PPF), Income Tax, Section 80C, SCSS to NPS – All changes to expect

Budget 2020 Date India, Time, Expectations:  Taxpayers can look forward to a lot when Finance Minister Nirmala Sitharaman presents her second Union Budget speech in the Parliament on February 1. If reports spilling out of the Finance Ministry get true, the Central government may announce several measures to put more money in the hands of taxpayers in order to boost demand and household savings. These reliefs could be in the form of a change in tax slabs, a raise in standard deduction limit, provision to claim more deductions under Section 80C of the Income Tax Act. Some changes may be announced to make schemes like National Pension System (NPS) popular among the working people, especially the young and the salaried. However, one shouldn’t be much surprised if the Budget doesn’t provide any new income tax relief as it will have a negative effect on the Centre’s direct tax collections. As the excitement builds for Budget 2020, we track all the top expectations and analysis of how you will be impacted.

Double National Pension System Benefit expected

Finance Minister Nirmala Sitharaman is expected to encourage household savings and announce several measures to boost the economy. The Government may also consider doubling the tax benefit on National Pension System (NPS) contributions from Rs 50,000 to Rs 1 lakh. Rachit Chawla, Founder and CEO, Finway told FE Online, “Tax benefit under the NPS should be doubled from current Rs 50,000 to Rs 1 lakh and the government should extend the facility of the tax-free contribution of 14 per cent by the central government to its employees under the NPS to all categories of subscriber

 source -https://www.financialexpress.com/