Section 80C of the Income Tax Act provides provisions for tax deductions on a number of payments, with both individuals and Hindu Undivided Families eligible for these deductions.
Eligible taxpayers can claim deductions to the tune of Rs 1.5 lakh per year under Section 80C, with this amount being a combination of deductions available
Some of the popular investments which are eligible for this tax deduction are mentioned below
- Payment made towards life insurance policies (for self, spouse or children)
- Payment made towards a superannuation/provident fund
- Tuition fees paid to educate a maximum of two children
- Payments made towards construction or purchase of a residential property
- Payments issued towards a fixed deposit with a minimum tenure of 5 years
Section 80C has an exhaustive list of deductions an individual is eligible for, which have led to the creation of suitable sub-sections to provide clarity to taxpayers
Section 80 CCC of the Income Tax Act provides scope for tax deductions on investment in pension funds.
These pension funds could be from any insurer and a maximum deduction of Rs 1.5 lakh can be claimed under it This deduction can be claimed only by individual taxpayers
Section 80 CCD aims to encourage the habit of savings among individuals, providing them an incentive for investing in pension schemes which are notified by the Central Government.
Contributions made by an individual and his/her employer, both are eligible for tax deduction, subject to the deduction being less than 10% of the salary of the person. Only individual taxpayers are eligible for this deduction.
Open to both Hindu Undivided Families and Individuals, Section 80 CCF contains provisions for tax deductions on.
Subscription of long-term infrastructure bonds which have been notified by the government.
One can claim a maximum deduction of Rs 20,000 under this Section.
Section 80 CCG of the Income Tax Act permits a maximum deduction of Rs 25,000 per year, with specified individual residents eligible for this deduction.
Investments in equity savings schemes notified by the government are permitted for deductions, subject to the limit being 50% of the amount invested.