What is covered under 80C?

What is covered under 80C?

What are the investments eligible for deduction under 80C? PPF, NSC, NPS, Tax saver FDs, Post Office Term Deposit, ELSS, ULIP, Senior Citizens Savings Scheme, Sukanya Samridhi Account.13-Jan-2022

Who is eligible for 80C deduction?

The return earned from Employee Provident Fund (EPF), including the interest, is eligible for tax exemption under Section 80C of the Income Tax Act, 1961. It is only eligible for employees who have continued his or her service for at least 5 years.

What is 80C in income tax 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.21-Dec-2021

Can I invest more than 1.5 lakh in 80C?

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

Which 80C is best?

Best Tax Saving Investments Under 80C

• ELSS (Equity Linked Saving Scheme) Lock-In: 3 years. Returns: 15-18% (Based on the last 5 years)
• Public Provident Fund (PPF) Lock-In: 15 years. Return: 8%
• Bank FDs. Lock-In: 5 Years. Returns: 6-7%
• ULIPs. Lock-In: 5 Years (Minimum) Return: 11-13% (Last 5 years)

How can I save tax over 10 lakhs?

How to Save Tax for a Salary Above Rs 10 Lakhs?

• Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)
• Additional Reduction of Up To Rs 50,000 for NPS Investors (Section 80CCD.
• Reduce Your Taxable Income by Up To Rs 75,000 (Section 80D)
• Reduce Your Taxable Income by Up To Rs 2 lakhs (Section 24)

How is 80C calculated?

DEDUCTION UNDER SECTION 80C

• S.No. Deduction from. Type. Amount.
• Select. Life insurance premium paid. Deposit in provident fund/superannuation fund. Investment in fixed deposit/Bonds. Investment in NSC. Tuition fee of two children. Repayment of housing loan (principal component)
• Total.
• DEDUCTION UNDER SECTION 80C.

What is limit for 80D?

`25,000

How can I save tax on my salary?

15 Tips to Save Income Tax on Salary

• House Rent Allowance (HRA)
• Leave Travel Allowance (LTA)
• Employee Contribution to Provident Fund (PF)
• Standard Deduction.
• Professional Tax.
• Exemption of Leave Encashment.
• Exemption Under Section 89(1)
• Exemption from the Receipt Upon Opting for Voluntary Retirement.

Is LIC under 80C?

Section 80C provides deduction in respect of various items like life insurance premium, investment in Public Provident Fund, investment in NSC, repayment of principal component of housing loan, investment in Post Office Time Deposit Scheme, Senior Citizens Saving Scheme, etc.

What is the maximum limit for tax exemption?

Income Tax Exemption Limit The basic exemption limit for individuals below the age of 60 years is Rs. 2.50 lakhs. For senior citizens the exemption limit is Rs. 3 lakhs and for very senior citizen who are above 80 years, it is Rs.

How can I save under 80C?

Tax saving options under Section 80C

• Equity Linked Saving Scheme (ELSS)
• National Pension Scheme (NPS)
• Unit Linked Insurance Plan (ULIP)
• Public Provident Fund (PPF)
• Sukanya Samriddhi Yojana (SSY)
• National Savings Certificate (NSC)
• Fixed Deposit (FD)
• Employee Provident Fund (EPF)

How can I save my income tax beyond 80C?

Best 10 Tax Saving Investment Options Other Than 80C

• Tax saving with NPS under Section 80CCD (1B):
• Tax savings on Health insurance premiums under Section 80D:
• Tax savings on repayment of an Education loan under Section 80E:
• Tax savings on Interest component of Home loan under Section 24:

Is SIP tax free?

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.

Which investment is tax free?

Listed below are tax free investments that meet a variety of needs and financial goals:

Where can I invest to avoid tax?

How can I save tax after 1.5 lakhs?

Recommended ways of saving taxes under Sec 80C,80D and 80EE

• Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
• Buy Medical Insurance, maximum deduction allowed is Rs.
• Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.

What income is tax free?

If your income is below ₹2.5 lakh, you do not have to file Income Tax Returns (ITR).

How much tax do I pay on 15 lakhs?

Income tax slabs for new and old regime

How can I save tax if I earn 12 lakh?

Tax Deductions under Section 80(C) Investments in EPF (Employee Provident Fund) Investments in ELSS funds (Equity-Linked Savings Scheme) Investments in NSC (National Savings Certificates) Payment of premiums against Life Insurance Policies.09-Aug-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.

What is covered under 80C?