Budget 2026: Will Nirmala Sitharaman Hike 80C Deduction Limit to Rs 3 Lakh?

• Taxpayers hope Finance Minister Nirmala Sitharaman will increase the Section 80C deduction limit from the current Rs 1.5 lakh.
• The deduction limit under Section 80C has not been revised since 2014, despite rising living costs.
• Section 80C, available only in the old tax regime, includes investments like PPF, tax-saving mutual funds, life insurance, and home loan principal.
• Experts suggest increasing the limit to Rs 3 lakh would encourage savings and investments, especially for home loan holders.
• A higher 80C limit could help reverse the observed decline in family savings and promote long-term financial planning.

Why It Matters: Taxpayers anticipate an increase in the Section 80C deduction limit to Rs 3 lakh in Budget 2026.