Section 80C of the Income Tax Act is likely one of the hottest and elementary avenues of managing your taxes. If you haven’t managed your taxes nicely to date, studying about earnings tax advantages out there below Section 80C legal guidelines may be step one. Many wealth planners emphasize on the significance of earnings tax advantages out there below Section 80C, usually thought of probably the most common avenues to save cash amongst salaried assessees.
Here’s your information to numerous tax advantages you’ll be able to declare to handle your tax outgo utilizing Section 80C of the Income Tax Act:
How a lot earnings tax can one save below Section 80C?
Currently, Section 80C gives for deduction of as much as Rs 1.5 lakh in taxable private earnings in a monetary 12 months below sure situations.
Simply put, you’ll be able to scale back as much as Rs 1.5 lakh out of your complete taxable earnings making use of Section 80C norms. The Income Tax Department returns any extra taxes paid by you based mostly in your investments in life insurance coverage, provident fund (EPF and PPF), National Pension System (NPS), National Savings Certificate (NSC) and tax-saving fastened deposits..
Here are some investments that are eligible for claiming earnings tax advantages below Section 80C:
- Premium paid to subscribe to or renew a life insurance coverage coverage
- Unit-Linked Insurance Plans (ULIPs)
- Tax-saving mutual funds or Equity-Linked Saving Scheme (three years of lock-in interval)
- Provident fund (Employees’ Provident Fund/Public Provident Fund)
- Payment of stamp responsibility on buy of home property
- Payment of principal quantity of a house mortgage
- National Savings Certificate (NSC)
- Tax-saving fastened deposit (five-year maturity)
- Small financial savings schemes corresponding to Senior Citizen Savings Scheme and Sukanya Samriddhi
- Payment of tuition charges (paid to a college, faculty or faculty) for as much as two youngsters
One can use a mix of those choices to say an general deduction as much as Rs 1.5 lakh in taxable earnings.