Income Tax Deductions under Section 80 C - Tax Planning

Income Tax Deductions under Section 80 C - Tax Planning

Confia Interactive - Finance Updates

How to Save your Income Tax?

Most of us try to save tax by saving under Section 80C of the Income Tax Act. However, it is important to know the Section in toto so that one can make best use of the options available for exemption under income tax Act. Lets try to understand the section to get the maximum benefit out of it.

Sec 80C of the Income Tax Act is the section that deals with these tax breaks. It states that qualifying investments, up to a maximum of Rs. 1 Lakh, are deductible from your income. This means that your income gets reduced by this investment amount (up to Rs. 1 Lakh), and you end up paying no tax on it at all! So you can save a huge amount of Tax.

So, Lets understand which are the qualifying Investments.:

• Provident Fund (PF) & Voluntary Provident Fund (VPF)

• Public Provident Fund (PPF)

• Life Insurance Premiums

• Equity Linked Savings Scheme (ELSS)

• Home Loan Principal Repayment

• Stamp Duty and Registration Charges for a home

• National Savings Certificate (NSC)

• Infrastructure Bonds

• Pension Funds 

• 5-Yr bank fixed deposits (FDs)

• Senior Citizen Savings Scheme 2004 (SCSS)

• 5-Yr post office time deposit (POTD) scheme

• NABARD rural bonds

• Unit linked Insurance Plan

So, Save your Tax....  Do follow us , to keep updated abour such useful Information.

- Confia Finance Team

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