Do you know everything about 80C Deduction?

Do you know everything about 80C Deduction?

Indian Income Tax Act 1961 gives you some deductions under Chapter VIA to avail tax relaxation in Income Tax. In which 80C is the most popular and well known section. So here in this article we will discourse point to point about Section 80C.

How much deduction can you get-

Maximum Rs. 1,50,000

How can you avail 80C deduction-

1- By make Investment in-

                        (i) Equity Linked Saving Scheme (ELSS)

                             * Lock in period of 3 Years.   

                             * Return benefits are Tax-Free to the limit of 1 Lakh.

                        (ii) Unit Linked Insurance Plans (ULIPs)

      * Lock in period of 3 to 5 Years.

      * Return benefits are also Tax-Free u/s 10(10D)

                        (iii) Life Insurance Premium

                              * Premium of Taxpayer & his dependent.

           

2- By Pay for-

                        (i) Children’s Tuition Fees

                        (ii) Home Loan (Principal Only) Repayment

 

3- By Save money in-

                        (i) Sukanya Samridhi Yojana (SSY)

                              * Lock in period is 18/21 Years.

                              * Minimum Rs. 1,000 to Maximum Rs. 1,50,000 per annum.

                              * Interest received towards the scheme is also Tax-Free.       

                        (ii) Public Provident Fund (PPF)

                              * Lock in period of 15 Years.

                              * Extendable by 5 Years.

                              * Partial withdrawable after 7 Years.

                              * Interest is also Tax-Free.

                        (iii) Employee’s Provident Fund (EPF)

                               * Minimum tenure 5 Years.

                               * Minimum salary Rs. 15,000 per month.

                               * Interest is Tax-Free after 5 years or retirement.

                        (iv) National Saving Certificate (NSC)

                               * Lock in period of 5 Years.

                               * Interest is Taxable.

                        (v) Senior Citizen Saving Scheme (SCSS)

                               * Lock in Period of 5 Years.

                               * Interest is Taxable.

                        (vi) 5 Year Tax Saving Fixed Deposits

                               * Lock in Period of 5 Years.

                               * Interest is Taxable.

 

Benefits of 80C-

            See, saved and invested money in above schemes is not only your savings for the future but also you will get tax relaxation in present tax period. So all we can say that you have Laddoos in both of your hands.

Who can avail 80C benefits-

            Every taxpayer who have Invested, Saved in or Paid for above mentioned points, can avail benefits of section 80C deduction.