Table of Contents
What are the exemptions under 80 C?
Subsections of Section 80C
| Tax saving sections | Eligible investments for tax exemptions |
|---|---|
| Section 80C | Investments in Provident Funds such as EPF, PPF, etc., payment made towards life insurance premiums, Equity Linked Saving Schemes, payment made towards the principal sum of a home loan, SSY, NSC, SCSS, etc. |
What all comes under 80 C?
The following are the investments that qualify for deductions under Section 80C of the Income Tax Act:
- Public Provident Fund.
- Employee Provident Fund.
- Voluntary Provident Fund.
- Five-Year Post Office Time Deposit.
- Equity Linked Savings Scheme.
- Five-Year Tax Saving Bank Fixed Deposit.
- National Savings Certificate.
Who can claim deduction under 80 C?
Individuals who are above 60 years of age can invest in this scheme and claim tax benefits up to Rs. 1.5 lakh under Section 80C of the Income Tax Act.
Does 80D come under 80C?
Other Tax Saving options beyond Sec 80C & Sec 80D. The most commonly used Sections for tax-saving under the Income Tax Act are Section 80C and Section 80D. Popular instruments like EPF, ELSS, ULIP, NPS, etc. are deductible under Section 80C.
What all deductions can I claim?
Allowable Deductions
- Life insurance premium.
- Equity Linked Savings Scheme (ELSS)
- Employee Provident Fund (EPF)
- Annuity/ Pension Schemes.
- Principal payment on home loans.
- Tuition fees for children.
- Contribution to PPF Account.
- Sukanya Samriddhi Account.
What comes under 80C and 80D?
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 is exemption for 80D?
`25,000
For a person aged below 60 years, the limit for deduction under Section 80D is upto `25,000. The limit of `25,000 includes `5,000 on preventive health checkup. If the age of the insured is above 60 years, the limit for deduction increases upto `50,000.
What comes under 80C 80CCC and 80CCD?
Section 80CCC – Insurance Premium /Section 80CCD – Pension Contribution.
What is difference between exemption and deduction?
Deduction means subtraction i.e. an amount that is eligible to reduce taxable income. Exemption means exclusion, i.e. if certain income is exempt from tax then it will not contribute to the total income of a person. The deduction is a concession, but Exemption is relaxation.
Can medicine bills be claimed under 80D?
Can medical expenses be claimed under 80D? Yes. Under section 80D, it allows the policyholder to save tax by claiming medical insurance incurred on self, spouse, dependent parents as a deduction from income before paying the taxes.
What investment comes under 80D?
Deduction for the premium paid for Medical Insurance You (as an individual or HUF) can claim a deduction of Rs.25,000 under section 80D on insurance for self, spouse and dependent children. An additional deduction for insurance of parents is available up to Rs 25,000, if they are less than 60 years of age.
Who can claim deduction u/s 80 D and how much?
Section 80D of the Income Tax Act provides tax deductions for medical expenditure made for the self and the family which can go up to Rs. 50,000. Self, spouse, children, parents, and Hindu Undivided Families (HUF) can claim this.
What are the tax deductions available under Section 80C?
The amount you contribute towards PPF is eligible for tax deductions under Section 80C of the Income Tax Act. Premium payments towards life insurance: If you have purchased a life insurance policy for yourself, your children or your spouse, the premiums you pay towards it are eligible for deductions under Section 80C of the Income Tax Act.
Who is eligible for section 80CCG tax exemption?
Citizens who belong to a specific community and have made an investment in equity savings schemes that are declared by the Government of India, get to enjoy income tax exemptions under Section 80CCG. The deductions allowed are 50% of the amount of the investment.
What is section 80ccf and Section 80C?
Section 80CCF, a subset of section 80C, deals with the tax deductions for the investment made in government bonds. The deduction limit is up to INR 20,000 per year for long-term bonds with a minimum tenure of 10 years. The interest rate is fixed on these bonds. However, the gains on maturity are taxable. 13. NABARD Rural Bonds:
What is Section 80C of income tax for HUF members?
This income tax exemption is allowed to HUF members as well as non-HUF members. The maximum of Rs.1,50,000 can be asserted for the financial year 2016-17, 2017-18 and 2018-19 each. If by chance, you have paid taxes in excess and have invested in PPF, LIC and Mediclaim, you can claim deductions under section 80C.