Budget 2026: Experts Demand Higher 80C Limit, Long-Term Savings Incentives

• Tax experts advocate for a reset of long-term savings incentives in Budget 2026, citing inflation and rising living costs.
• A key demand is to increase the Section 80C tax deduction limit, which has been stagnant at ₹1.5 lakh for over a decade.
• Experts like S.R. Patnaik believe a higher 80C limit would boost retirement preparedness across all income groups.
• Reforms are also sought in capital gains and interest income taxation to restore investor confidence, including relief in long-term capital gains tax and preferential treatment for long-term FDs.
• There's a call to separate long-term savings from the general 80C basket, proposing dedicated sub-limits for retirement products like PPF and NPS to encourage goal-based savings.

Why It Matters: Experts urge Budget 2026 to increase Section 80C limit and reform long-term savings for better financial planning.