Apart from Rs 1.5 lakh, tax exemption of Rs 50,000 can be availed under section 80C in a financial year. This exemption is given in the Income Tax Act 80TTB. If investment in NSC is included in this, then senior citizens can get a big relief.
Income tax rebate
National Savings Certificate (NSCThe government can give some tax exemption on the interest earned. The government will make interest income up to Rs 50,000 tax free (Tax free) can do. The government can give this tax exemption under section 80TTB of income tax. Budget 2022 (Budget 2022In ) the government can bring some provision for this. Right now this earning is not tax free and tax has to be paid on NSC interest. If this provision is included in the budget, then taxpayers will get a big relief because people consider NSC as a better way of investment and invest money.
The Institute of Chartered Accountants of India or ICAI has suggested to the government for this. ICAI has said in the suggestion that the government should bring the NSC earnings under section 80TTB of the Income Tax Act. If this happens, then senior citizens investing in post office through NSC will get the benefit of tax benefits. Section 80TTB provides tax benefit of up to Rs 50,000 to senior citizens on interest earned on deposits. There is a demand to include the income from NSC in this section.
Benefit only for senior citizens
Under section 80TTB, senior citizens get tax exemption on income earned from bank deposits. This exemption is given to such senior citizens whose main source of income is interest earned. ICAI has said that senior citizens should also include income from National Savings Certificate or NSC interest in section 80TTB. If senior citizens invest in NSC even in the post office, then their interest income can be kept in this section. This will enable them to get the benefit of tax exemption. A large number of senior citizens invest in NSC.
What is section 80TTB
The benefit of this section is given to senior citizens who are above 60 years of age. Senior citizens can get a tax exemption of Rs 50,000 on their earnings from bank deposits during any one financial year. This rule came into force on 1 April 2018. You can take advantage of tax exemption on earning from savings account or FD. Interest can be availed on deposits in co-operative societies engaged in banking business. You can also get a discount on the interest of any scheme running in the post office. A tax benefit of Rs 50,000 can be availed in addition to Rs 1.5 lakh under section 80C.
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