Section 80C of the Income Tax Act gives arrangements to tax deductions on various payments, with the two people and Hindu Unified Families qualified for these deductions. Qualified taxpayers can assert deductions to the tune of Rs 1.5 lakh for each year under Section 80C, with this sum being a mix of deductions accessible under Sections 80 C, 80 CCC and 80 CCD.
Portions of the well-known investments that are qualified for this tax deduction are:
- Payment made towards life coverage premiums (for self, companion or kids)
- Payment made towards a provident Fund.
- Educational cost expenses paid to instruct a most extreme of two youngsters
- Payments made towards development or purchase of a private property
- Payments issued towards a FD for a minimum tenure of 5 years
This section accommodates some of extra deductions like interest in shared assets, senior nationals sparing plans, buy of NABARD bonds, and so forth.
Subsections under Section 80C:
Section 80C has a thorough rundown of deductions an individual is qualified for, which have prompted the production of appropriate sub-sections to give clarity to taxpayers.
Section 80 CCC:
Section 80 CCC of the Income Tax Act gives extension to tax deductions on interest in pension schemes. These annuity assets could be from any back up plan and maximum deduction of Rs 1.5 lakh is possible under it. Just singular taxpayers can avail this deduction.
Section 80 CCD:
Section 80 CCD intends to empower the habit of savings among people, giving them a motivating force to putting resources into annuity plans that Central Government advises. Contributions made by an individual and his/her boss, both are qualified for tax deduction, subject to the deduction being under 10% of the pay of the individual. Just individual taxpayers are qualified for this deduction.
Section 80 CCF:
Open to both Hindu Unified Families and People, Section 80 CCF contains arrangements for tax deductions on membership of long-term infrastructure bonds introduced by the government. One can assert a maximum deduction of Rs. 20,000 under this Section.
Section 80 CCG:
Section 80 CCG of the Income Tax Act allows a maximum deduction of Rs. 25,000 every year, with determined individual occupants qualified for this deduction. Investments in equity savings schemes advised by the government are eligible for deductions, subject as far as possible being half of the sum contributed.