Income tax savings: As part of the old income tax system, a taxpayer can apply for a tax deduction for investments up to a maximum of 1.5 LAKH according to section 80c. The advantage of this section is for individual taxpayers and Hindu undivided families
Tax savings: The 2024-25 financial year is about to end. If you have not yet saved tax savings for this financial year, you can do so by March 31, 2025. If you have passed the old income tax system, the tax liability can be reduced by using different types of tax deductions in accordance with the rules of the Income Tax Act. In the new income tax system, the taxpayer receives only a few tax deductions.
When we talk about deductions, section 80c is the most popular. Most taxpayers first claim a deduction according to this section. Share the complete details of the tax advantages available in section 80c with …
Which savings instruments are covered
As part of the old income tax system, a taxpayer can claim a tax deduction for investments of up to 1.5 LAKH according to section 80c. The advantage of this section is for individual taxpayers and Hindu undivided families (Hufs). The investment options for which the tax deduction is available in accordance with section 80c include -life insurance premium, ELSS, EPF contribution, VPF contribution, contribution to the LIC pension schedule, investments in NPS, deposit in PPF (public providence), deposit in the tax saving FD, investments in Sukanya samriddhi scheme, deposit in the senior Citizens’ deposit, deposit in the NOD deposit, the deposit in the NOD deposit, the deposit in the NOD payment, the deposit in the NOD deposit, the deposit in the nod, the deposit in the near, in the NOD deposit, the deposit in No. subscription to the selection of shares and repayment of the capital building loan.
In order to know about section 80c, it is also important to know about section 80ccc and 80ccd. Without this, 80c is considered incomplete.
Section 80ccc
This section of the Income Tax Act offers tax deductions for investments in a Pension plan from Lic or an insurance company. Annuity means pension. To claim this deduction, the plan must be a pension that pays one. The pension received by the annuity plan or the total amount or the bonus together with the interest to hand over this plan is under the area of responsibility of the income tax.
Section 80ccd
Section 80ccd (1): This sub -section offers a tax deduction for deposits in pension accounts as part of the central government pension system. An employee of employee can claim a deduction by paying up to 10 percent of his salary on the pension account up to a maximum of 1.5 lakh.
Remember that after the sections 80c, 80CCC and 80CCD (1) no total tax deduction of more than 1.5 LAKH can be used.
Section 80ccd (1b): This allows an employee to use a tax deduction of up to 50,000 rupees by obtaining in his own name on the NPS account. Up to 60 percent of the due quantity to NPs, which are received as a flat -rate amount, are tax -free, but monthly annuity results are taxable.
Section 80ccd (2): An employee can also assert a tax deduction in accordance with section 80ccd (2) to the employer’s contribution to NPS. This corresponds to 10 percent of the salary. As part of the new income tax system, which is effective from April 1, 2020, an employee of the employee can assert a tax deduction in accordance with Section 80CCD (2) to the employer’s contribution to his NPS account.
