80c Deduction List: Section 80C is one of the most popular and favourite sections amongst the taxpayers as it allows to reduce taxable income by making tax saving investments or incurring eligible expenses. It allows a maximum deduction of Rs 1.5 lakh every year from the taxpayers total income.
The benefit of this deduction can be availed by Individuals and HUFs. Companies, partnership firms, LLPs cannot avail the benefit of this deduction. Section 80C includes subsections , 80CCC, 80CCD (1) , 80CCD (1b) and 80CCD (2).It is important to note that overall limit including the subsections for claiming the deduction is Rs 1.5 lakh except an additional deduction of Rs 50,000 allowed u/s 80CCD(1b)
80c Deduction List
|Types||Eligible investments for tax deductions|
|80 C||80C allows a deduction for the investment made in PPF, EPF, LIC premium, Equity-linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY), National saving certificate (NSC), Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years, Infrastructure bonds, etc|
|80CCC Deduction for life insurance annuity plan.||80CCC allows a deduction for payment towards annuity pension plans Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt.|
|80CCD (1) Deduction for NPS||Employee’s contribution under section 80CCD (1) Maximum deduction allowed is least of the following10% of salary (in case taxpayer is employee)20& of gross total income (in case of self-employed)Rs 1.5 Lakh ( limit allowed u/s 80C)|
|80CCD (1b) Deduction for NPS||Additional deduction of Rs 50,000 is allowed for the amount deposited to the NPS accountContributions to Atal Pension Yojana are also eligible for deduction.|
|80CCD (2) Deduction for NPS||Employers’ contribution is allowed for deduction up to 10% of basic salary plus dearness allowance under this section. Benefit in this section is allowed only to salaried individuals and not self-employed.|
80c Deduction List PDF
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Tax Deductions under Section 80c
Section 80C of the Income Tax Act provides provisions for tax deductions on a number of payments, with both individuals and Hindu Undivided Families eligible for these deductions. Eligible taxpayers can claim deductions to the tune of Rs 1.5 lakh per year under Section 80C, with this amount being a combination of deductions available under Sections 80 C, 80 CCC and 80 CCD.
Some of the popular investments which are eligible for this tax deductions are mentioned below.
- Payment made towards life insurance policies (for self, spouse or children)
- Payment made towards a superannuation/provident fund
- Tuition fees paid to educate a maximum of two children
- Payments made towards construction or purchase of a residential property
- Payments issued towards a fixed deposit with a minimum tenure of 5 years
Investments that qualify for Deductions under Section 80C
The following are the investments that qualify for deductions under Section 80C of the Income Tax Act.
- Public Provident Fund
- Employee Provident Fund
- Voluntary Provident Fund
- Five-Year Post Office Time Deposit
- Equity Linked Savings Scheme
- Five-Year Tax Saving Bank Fixed Deposit
- National Savings Certificate
- Senior Citizens Savings Scheme
- Unit Linked Insurance Plan
- Sukanya Samriddhi Scheme
- Infrastructure Bonds
- NABARD Rural Bonds
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