The Union Budget has provided some relief for tax payers and small savers. They can now save a higher amount from tax through eligible investments in tax-savings instruments. Currently the maximum amount eligible for deduction through permissible investments under 80C of the Income-Tax Act is Rs 1 lakh. This has been enhanced to Rs 1.5 lakh. In a parallel development, the maximum amount that can be invested under the public provident fund (PPF) has also been increased to Rs 1.5 lakh per annum from Rs 1 lakh currently.
Read the Hindu Business Line news report here.