Deduction under Section 80C

 

Per income tax, act 1961 provides income tax rebate Deduction under Section 80c, 80c exemptions, investment 80c, 80c limit, mutual funds 80c, 80c tuition fees, saving under 80c, maximum limit of 80c, tax-saving under 80c.

 

Income Tax efiling 

E payment Income Tax

 

80c Deduction List

• Life Insurance Premium – Deduction available in case of Individual, his / her spouse, or any child (including adult child or marriage daughter), Member of HUF, and also 80c deduction do not exceed more than 20% of actual capital sum assured.

• Payment to a contract for a Deferred Annuity Fund for an Individual, his / her spouse, or any child (including adult child or married daughter), Member of HUF.

• Contribution any type of Provident Fund as per the Provident fund Act, 1925, and also deductions do not exceed more than one-fifth of the salary.

• Contribution any type of Public Provident Fund as per the Public Provident fund Act, 1968. The contribution is applicable in the name of the individual, his / her spouse, or any child (including adult child or marriage daughter), Member of HUF.

• Contribution to any type of Recognized Provident Fund

• Contribution to any type of Approved Superannuation Fund

• Subscriptions to Security of the Central Government or notified Deposit Scheme.

• Subscriptions to National Saving Certificates as per rule 15 of NSC Rule, 1989, and also accrued NSC interest deduction available for 80C.

• Contribution to Unit Linked Insurance Plan, 1971, and also Unit Linked Insurance Plan for LIC of India. The deduction is available in the name of an individual, his / her spouse, or any child (including adult child or married daughter), Member of HUF.

• Subscriptions to any units of Mutual Fund as per under section 10(23D) under Equity Linked Savings Scheme, 2005. As per the scheme, the lock-in period is three years.

• Contribution to the Deposit Scheme of the National Bank and also the deposit scheme of Public Sector Companies engaged in providing construction or purchase of housing in India for residential purposes.

• Tuition fee (excluding any payment donation, development fee, or cultural fee) to Schools, Collage, and Universities in India for only any two children of the Individual.

• Payment for the purpose of Construction or Purchase of a residential housing property as part or full payment due to any company, co-operative society, repayment principal of loan from, any Bank, LIC,  Central Government any State Government.

• Purchase of equity shares or debentures from a Public Company or Public Financial Institution.

• Investment in a Term Deposit for a fixed deposit period of not less than five years as per the term deposit scheme, 2006.

 

80c Limit or Maximum Deduction Under Section 80c:

As per the Income Tax Act 80c limit for deduction of any individual, Hindu Individuate Family (HUF) is not more than Rs. 1 lakh 50 thousand in the financial year.

 

80c Investment Options:

A list of 80C Investment in India is given below

1. Investment in Long Term Insurance Plan from Bank or Company for more than 5 years.
2. Investment in Deferred Annuity Fund
3. Contribution to Provident Fund
4. Contribution to Public Provident Fund from Bank or Post Office
5. Investment in National Saving Certificate in Post Office 
6. Subscription of any Unit Link Policy from Bank or Any Company
7. Investment in Mutual Fund from any Bank or Company
8. Purchase of Long Term Share and Debenture
9. Investment in Long Term Deposit any company or bank ( Fixed Deposit )
10. Purchase of Residential Building or Flat, Construction on ownership basis

 

What is 80c in income tax?

As per income tax rule, 80c means, income tax deduction under this section is allowed to deduct for Rs. 1 lac 50 thousand from total gross income of an individual or a HUF for a Financial Year.

 

Particulars	Mr. A ( 30 yrs )	Mr. B ( 45 yrs )	Mr. C ( 60 yrs )
Salary Income	200000	250000	350000
Other Income	30000	40000	50000
Life Insurance Premium	30000	40000	50000
Repay of Principal of Loan	20000	25000	30000
Provident Fund	70000	80000	100000
Computation	Mr. A ( 30 yrs )	Mr. B ( 45 yrs )	Mr. C ( 60 yrs )
Salary Income	200000	250000	350000
Other Income	30000	40000	50000
Gross Total	230000	290000	400000
Less Deduction 80C	120000	145000	150000
(Maxim Limit Rs.1.50 Lacs
Total Income	110000	145000	250000