Banks call for raising tax exemption limit in pre-Budget meet

Currently, tax deduction up to 1.5 lakh annually for Public Provident Fund, life insurance and equity-linked saving schemes is being provided under Section 80 (C) of the Income Tax Act.

Seeking an alleviation in the severity in Section 80 (C) of the Income Tax Act , banks and financial institutions met with Finance Minister Arun Jaitley on Tuesday, at a two hour-long pre-Budget consultation meeting, says a report in a leading financial publication. 

The meeting was graced by the presence of Rana Kapoor, Managing Director and Chief Executive Officer of YES Bank and State Bank of India Chairperson Arundhati Bhattacharya.

Currently, tax deduction up to 1.5 lakh annually for Public Provident Fund, life insurance and equity-linked saving schemes is being provided under Section 80 (C) of the Income Tax Act.

Hoping projects to pick up momentum by getting quicker approval and also hinging expectations on the Reserve Bank of India to slash rates further in this calendar year, banks have proposed the government to focus on public spending in 2016-17, the report said.

Additionally, banks also asked for increasing the limit of investment in Public Provident Fund.