What investment comes under 80C?
80C allows deduction for PPF, EPF, LIC , ELSS, NSC, repayment of home loan, tution fees etc. 80CCC allows deduction for any amount paid towards the annuity plan of LIC or any other insurer. 80CCD allows deduction for pension contributions made by employee, employer contribution or voluntary self contribution.
There is no legal restriction on the maximum amount invested in an ELSS, though the deduction under Section 80C is limited to Rs 1.5 lakh only.22-Nov-2021
What comes under 80C exemption?
Any contribution towards Public Provident Fund (PPF) can be filed for tax deduction under Section 80C. Public Provident Funds come with a maximum deposit limit of Rs. 1,50,000, allowing an investor to claim the entire deposited amount as an exemption under this Income Tax act.
Investment options under Sec 80C
Which investment is tax free?
Listed below are tax free investments that meet a variety of needs and financial goals:
1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)
Does SIP come under 80C?
SIPs can be one of the best tax-saving instruments with high returns on your investments. You can claim a deduction of up to Rs. 1.5 lakh from your taxable income for investing in ELSS through SIPs under Section 80(C) of The Income Tax Act, 1961.
₹ 1.5 lakh per year
How do I claim 80C deduction?
You can claim this deduction only if you have exhausted the limit available to you under the head 'Income from house property' under section 24 for Rs 2 lakh. This deduction can be claimed on the interest paid on the loan taken for buying affordable house.23-Jun-2018
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.21-Dec-2021
How can I save tax on 12 lakhs?
Tax Deductions under Section 80(C) Investments in PPF (Public Provident Fund) Investments in EPF (Employee Provident Fund) Investments in ELSS funds (Equity-Linked Savings Scheme) Investments in NSC (National Savings Certificates)09-Aug-2022
Tax savings scheme under Section 80C, NPS under Section 80CCD(1b), education or house loans, and even insurance premiums can help you achieve the goal of zero tax in a given year if your annual salary is less than Rs 10 lakh per year.04-Apr-2022
What is the tax on 9 lakhs?
The finance minister announced that individuals with an annual income between Rs 5 lakh and Rs 7.5 lakh would pay 10% tax, and those earning Rs 7.5 lakh to Rs 10 lakh 15%. Under the old regime, with deductions, these individuals pay 20% income tax.
National Pension Scheme (NPS) As one of the best tax-saving investments scheme, National Pension Scheme helps to provide tax-exemption under three different sections as mentioned below. The contribution, up to the maximum limit of Rs. 1.5 lakh can be claimed for tax exemption under section 80C of the IT Act.
Is FD tax free?
A tax saving FD or Fixed Deposit is a financial investment instrument offered by banks & NBFCs where you can deposit money and get a higher rate of interest than a normal savings account. Your investments under this scheme are exempt from tax deductions as per section 80C.
32 Easy Ways to Save Income Tax in 2022
What income is tax free?
If your income is below ₹2.5 lakh, you do not have to file Income Tax Returns (ITR).
Income tax slabs for new and old regime
How can I save maximum taxes?
Tax Saving Schemes
Section 80C offers tax deductions on different types of tax-saving investments, such as ULIP, PPF, ELSS, EPF, LIC premium, etc. Section 80D deduction is allowed for availing tax exemptions on health insurance premiums paid for self, family, & parents and expenses incurred on preventive health check-ups.
How much tax will I pay if my salary is 50000?
If you make ₹ 50,000 a year living in India, you will be taxed ₹ 6,000. That means that your net pay will be ₹ 44,000 per year, or ₹ 3,667 per month.
What investment comes under 80C?