Quick Answer: What Is 80 C In Income Tax?

Can I invest more than 1.5 lakhs in 80c?

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act..

Is HRA removed?

Along with House Rent Allowance (HRA) benefits and Standard Deductions, other common and popular deductions removed under the new tax regime are: Exemption u/s 80C – Up to Rs 1.5 lakh. … Deduction on Home Loan interest – Up to Rs 2 lakh.

How can I save tax beyond 1.5 lakhs?

I. Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount. This, in effect, reduces your taxable income and reduces your tax liability.

Can we claim parents LIC in 80c?

LIC Life Insurance Premium Life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included.

Is FD covered under 80c?

According to current income tax laws, under Section 80C of the Income Tax Act, you can claim deduction for investments up to Rs 1.5 lakh in a financial year in tax-saving fixed deposits (FDs). The amount so invested is to be deducted from gross total income to arrive at the net taxable income.

Can a person have 2 PPF account?

The PPF rules allow the same individual to open another account in the name of a minor but it does not allow to hold more than one PPF account in one’s own name. While only one PPF account is allowed to be opened in one’s name, there could be a possibility that one ends up holding multiple PPF accounts.

What is 80 C under Income Tax Act?

Section 80C of the Income Tax Act of India is a clause that points to various expenditures and investments that are exempted from Income Tax. It allows for a maximum deduction of up to Rs. 1.5 lakh every year from an investor’s total taxable income.

What is 80c and 10 10d?

Under section 80C, premiums that you pay towards a life insurance policy qualify for a deduction up to ₹1.5 lakh, while Section 10(10D) makes income on maturity tax-free if the premium is not more than 10% of the sum assured or the sum assured is at least 10 times the premium. … In the example, your deduction will be Rs.

What is 80c limit?

According to the section 80CCE, the maximum aggregate deduction that can be claimed under section 80C, section 80CCC and section 80CCD (1) cannot exceed more than Rs 1.5 lakhs. This section allows deduction from gross total income for contributions made to pension schemes of the Central Government.

How can I save my tax after 80c?

In this article, let’s take a look at the tax-saving options other than Section 80C to turn you into a smart tax saver.Section 80CCD: National Pension Scheme. … Section 80D: Payment of health insurance premium. … Section 80E: Repayment of an education loan. … Section 24: Interest payment of a home loan.More items…•

What will happen if I deposit more than 1.5 lakh in PPF?

“Amount beyond Rs 1.5 lakh cannot be deposited in the PPF account as the transaction will be rejected at the time of transfer. … Even if the depositor manages to deposit more than the limit, the transaction shall be subsequently rejected.

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

Is FD tax free?

The interest earned under an FD is taxable under “income from other sources”. The amount invested under 80C of the Income Tax Act is exempt but interest earned under such investments is taxable. … It means if the interest earned from a company deposit exceeds ₹ 5,000, the investor is liable for a TDS it.

How can I save tax if I earn 20 lakh?

These deductions include: Section 80C deduction of maximum Rs 1.5 lakh, section 80D deduction for health insurance premiums paid and other deductions for which a taxpayer is eligible, section 80TTA deduction for interest received from a saving account held with bank or post office etc.

Is PF part of 1.5 lakh investment?

Employees Provident Fund (EPF) and Public Provident Fund (PPF) along with other investments like life insurance premiums, ELSS, tuition fees of children, NSC, home loan principal, tax saving FDs etc all put together can get a deduction of only up to ₹1.5 lakh in the current financial year.

What all is covered under 80c?

Section 80C umbrella for Assessment Year 2020-21 (FY 2019-20)SAVINGSINVESTINGPublic Provident Fund (PPF)Equity Linked Saving Scheme (ELSS)Employee Provident Fund (EPF)National Pension System (NPS)National Saving Certificate (NSC)Unit Linked Insurance Plans (ULIPs)7 more rows•Dec 26, 2019

IS 80 C removed?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … However, all without deductions.