History of Deduction Under Section 80c

When the Deduction Under Section 80c by the finance act of 2005, was not exist there was a section 88. Section 88 used to provide us investments in specified financial instruments. There was no investment limit to the amount as section 80c provides us now. In the specified investments it was provided earlier a rebate of 20% on the amount of investment. The overall limit of investment in the earlier section 88 was Rs 60000/- and an additional Rs 10000/- for telecom, infra and power sector. This limit has been increased now by section 80c. There is flat limit for all different tax slabs which was not provided by section 88. To provide such a clear  and firm provisions section 88 is replaced by section 80c. It was applicable from 1st April 2006. Because deduction under section 80c of these provisions this section has become one of the most powerful and famous section.