Section 80C explained: Did you realize that Section 80C, under the Income Tax Act 1961, encourages you to lessen the tax trouble by allowing a deduction from the total taxable income in a financial year? Section 80C is a popular decision in the event that you want an answer to the inquiry: How might I save tax on salary?
Section 80C explained: Did you realize that Section 80C, under the Income Tax Act 1961, encourages you decrease the tax trouble by allowing a deduction from the total taxable income in a financial year? Section 80C is a popular decision on the off chance that you want an answer to the inquiry: How might I save tax on salary? Under Section 80C of the Income Tax Act 1961, taxpayers can claim deduction advantage on payments, commitments, or investments in a way determined by the Income Tax law. These include payment for extra security premium, commitment to any perceived opportune reserve and superannuation support, membership to National Savings Certificate, commitment to ULIP, Open Fortunate Store (PPF), Sukanya Samriddhi Yojana, 5-year tax-saving fixed store plans offered by banks, among others.
What is Section 80C breaking point?
In one financial year, the maximum amount of deduction under Section 80C or the Section 80C breaking point is Rs 1.5 lakh. To make the greater part of the arrangement, you have to restrict your total commitment to determined items qualified for deduction under Section 80C.
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What investments are secured under 80C? Does a fixed store go under 80C? Deduction list:
A portion of the popular investments/payments qualified for tax deductions under Section 80C are:
• Investment in five-year bank fixed deposit, with a maximum score cutoff of Rs 1.5 lakh in a financial year
• Investment in five-year mail centre time store, Senior Residents Savings Plan
• Investment in EPF or into voluntary opportune reserve
• Investment in National Savings Certificates
• Contribution to NPS Level II account made by Central Government Workers
• Contribution to Sukanya Samriddhi Account
• Payment for Life coverage Strategy (including ULIP) a premium of an individual and/or his or companion or any youngster
• Contribution to any approved superannuation finance
• Contribution to Unit-linked Insurance Plan (ULIP) 1971 and ULIP of LIC Mutual Reserve; Commitment to an approved annuity plan of LIC
• Payment for subscribing to ELSS of a mutual store; Commitment to informed annuity support set up by mutual reserve or UTI
• Repayment of Housing Loan Principal; the amount paid for stamp obligation, registration expense and so forth.
• Payment of educational expenses – For full-time education of his/her youngsters (maximum of two kids.) in any college, school, school, or other educational institution located in India.
When U/s 80C choices through which taxpayers can claim deductions to lessen their tax trouble, Section 80CCC specifically accommodates deductions against the commitment to certain annuity reserves. These assets could be set up by LIC or any other insurer under a benefit conspire approved by IRDAI. Under Section 80CCC, one can claim deduction up to Rs 1.5 lakh on payments made for continuing an existing plan or buying another approach in a financial year. Notwithstanding, this deduction limit is clubbed with the cutoff gave in Section 80C and Section 80CCD. Conclusion, the amount for which one can claim tax deduction under all three sections (Section 80C, Section 80CCC, Section 80CCD) cannot be more than Rs 1.5 lakh per financial year.
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4) Automated Income Tax Form 12 BA
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6) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
7) Individual Salary Sheet