Which investment comes under 80C?
Which investment comes under 80C?
Best Tax-Saving Investments Under Section 80C
| Investment | Returns | Lock-in Period |
|---|---|---|
| ELSS Fund | 15%-18% | 3 years |
| National Pension Scheme (NPS) | 12%-14% | Till Retirement |
| Unit Linked Insurance Plan (ULIP) | Returns vary from plan to plan | 5 years |
| Public Provident Fund (PPF) | 7%-8% | 15 years |
Can I invest more than 1.5 lakh in 80C?
If you are investing in an equity-linked savings scheme (ELSS) to claim the tax benefit under section 80C of the Income-tax Act, 1961, then do make sure that you have invested marginally more than the specified limit of Rs 1.5 lakh in a financial year.
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 80C in income tax 2020 21?
* Child may be married/unmarried, dependent or not on the Individual. For HUF – A deduction would be allowed on the premium paid by HUF for any of its members of the family.
What is the tax slab for 2020-21?
Income tax slab rate applicable for New Tax regime – FY 2020-21.
| Income Tax Slab | New Regime Income Tax Slab Rates FY 2020-21 (Applicable for All Individuals & HUF) |
|---|---|
| Rs 7.5 lakhs – Rs 10.00 Lakhs | 15% |
| Rs 10.00 lakhs – Rs. 12.50 Lakhs | 20% |
| Rs. 12.5 lakhs- Rs. 15.00 Lakhs | 25% |
| > Rs. 15 Lakhs | 30% |
Are there any tax deductions for investments under 80C?
Deductions on Investments Under Section 80C, a deduction of Rs 1,50, 000 can be claimed from your total income. In simple terms, you can reduce up to Rs 1,50,000 from your total taxable income through section 80C. This deduction is allowed to an Individual or a HUF.
How does Section 80C affect your tax return?
Under the provisions of Section 80C of the Income Tax Act, your taxable income will reduce by the amount you invest in the fund. Also, the interest you receive on such a fund is tax-free, meaning you can gain an all-around financial advantage under Section 80C, by investing in PPF. 2. Public Provident Fund (PPF)
Who is eligible for Section 80C tax deduction in India?
The provisions of Section 80C deductions apply to both an individual and a HUF. Also, this income tax saving Section covers both Indian residents and NRIs. The deduction is not available to companies, partnerships, and other corporate bodies.
Which is the best tax saving option under Section 80C?
Tax deduction up to Rs. 1,50,000 of premiums can be claimed under Section 80C of the Income Tax Act, 1961 for premium payments made towards a term insurance policy. This deduction can also be claimed for term insurance premiums paid for your spouse and/or children. Which is the best tax saving option under Section 80c of the Income Tax Act, 1961?