What is included under deductions 80C?

Section 80C Deduction on Investments The income tax department refunds the excess money to the bank account of the individual. 80C deductions include insurance premiums, ELSS mutual fund, tax saving FD, PPF, ULIP plans, and many other schemes.

What is Section 80C with example?

A tax exemption (such as interest on a tax free bond) cannot be deducted from your gross total income. For example if your gross total income is Rs 7 lakh and you have invested Rs 1.5 lakh in a tax-saving instrument under Section 80C, your taxable income will be become Rs 5.5 lakh.

What is the 80C limit for 2020 21?

Rs 1.5 lakh a year
There are certain specified investments and expenses under Section 80C of the Income Tax Act that helps taxpayer to lower tax payable. The maximum limit, however, is up to Rs 1.5 lakh a year that can be across all or any of those investments or expense.

Is FD covered under 80C?

A tax-saving fixed deposit (FD) account is a type of fixed deposit account that offers a tax deduction under Section 80C of the Income Tax Act, 1961. Any investor can claim a deduction of a maximum of Rs. 1.5 lakh per annum by investing in a tax-saving fixed deposit account.

What is Section 80C of income tax?

Section 80C of Income Tax is one of the tax saving sections of the Income Tax Act that allows tax deductions upto INR 1,50,000 on investments.

What is the limit of Section 80C deduction?

Section 80C is the most popular income tax deduction for tax saving. 80C deduction limit for current FY 2019-20 (AY 2020-21) is Rs.1,50,000. For claiming the tax benefit ITR filing is mandatory. In this guide we have explained all the investment options available under 80C alongwith their eligibility criteria.

What is Section 80C and 80CCC?

The Section 80C provides for deduction for life insurance premium paid, and section 80CCC offers a deduction for the amount deposited in an annuity insurance plan. Under the annuity plan, the pension received, surrender claim, and interest all are taxable in the year of receipt.

What is section 80 C?

Section 80CCC. Section 80CCC of the Income Tax Act provides an Income tax exemption for payments and deposits made for any annuity plan of LIC or any other insurer.