Users' questions

Who is eligible for 80C deduction?

Who is eligible for 80C deduction?

It allows for a maximum deduction of up to Rs. 1.5 lakh every year from an investor’s total taxable income. Section 80C is applicable only for individual taxpayers and Hindu Undivided Families. Corporate bodies, partnership firms, and other businesses are not qualified to avail tax exemptions under Section 80C.

What comes under 80C in income tax?

80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax ….

How can I claim my deduction under 80C?

Section 80C allows individuals and HUFs to claim tax deduction of up to Rs. 1,50,000 for certain tax-saving investments and payments….The Larger Picture.

Investments eligible for deduction under Section 80C
Unit-Linked Insurance Plan 5 years
Fixed deposit 5 years
Sukanya Samriddhi Yojana 8 years

What is Section 80C with example?

The amount you claim under this section is reduced from your gross total income for the purposes of computing income tax. For example, if your gross total income is Rs 10 lakh and you have claimed a deduction of Rs 1.5 lakh under Section 80C, your taxable income becomes Rs 8.5 lakh.

How can I get 80C certificate?

Process of Obtaining 80G Registration

  1. Registration Certificate.
  2. MOA /Trust Deed.
  3. NOC from the proprietor of the land where the registered office is situated.
  4. Copy of the Pan Card of the Trust/Institution.
  5. Copy of electricity bill, house tax receipt, or water bill.
  6. Proof of welfare activities pursued.

Is 80CCD included in 80C?

Sections 80CCD, 80CCC and 80C The benefits of Section CCD fall under those of 80C, i.e. the deductions claimed u/s 80CCD cannot be claimed again in 80C. The overall limit of deductions under 80C, 80CCC and 80CCD is Rs. 1.5 lakhs, with an additional deduction of Rs. 50,000 allowed u/s 80CCD sub section 1B.

How is 80C calculated?

Let us understand how to calculate tax savings using Section 80C. For example, your gross taxable income is Rs 9,00,000 per annum. You have the standard deduction of Rs 50,000 per year. You will then have to deduct the eligible expenses and investments under Section 80C.

Does 80C include PF?

An employee’s contribution to the Employee Provident Fund (EPF) account also earns a tax break under Section 80C of up to Rs 1.5 lakh. This amounts to 12% of salary that is deducted by an employer and deposited in the EPF or other recognised provident funds.

Is HRA included in 80C?

Is HRA part of 80C? No. HRA exemptions can be claimed under Section 10(13A) or Section 80GG.

Is HRA part of 80C?

When is Section 80C of Income Tax Act 1961 effective?

Today, we learn the provisions of section 80C of Income-tax Act 1961. The amended provision of section 80C is effective for financial year 2020-21 relevant to the assessment year 2021-22.

What is the purpose of Section 80C deduction?

What is Section 80c Deductions. Income Tax is a vital component of any country’s revenue collection which in turn is utilized in various welfare programs provided to the citizens. Income Tax is implied on the annual earning after a certain limit and according to prevailing tax slabs.

Which is covered by Section 80C in India?

Section 80C includes mutual funds, insurance premium tax saver FDs, PPF and several other schemes. 80CCC governs contributions to specific policies which pay a pension or annuity. 80CCD covers contributions to India’s National Pension System (NPS)

What is the limit of 80C deduction for 2019-20?

In other words, you may claim deduction up to ₹1.5 Lakh u/s 80C for financial year 2019-20 relating to assessment year 2020-21. As per sub-section (1) of section 80C: