80c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2012 DEAR PLEASE GIVE ME THE DETAIL OF SAVING CONSIDERED IN 80 C,AND 80D, WITH BASIC EXEMPTION AND LIMT.

THANKS :

RAKESH KUMAR

CA. Hari Kishan

CA. Hari Kishan (Expert)
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31 January 2012 The most important aspect that needs to be kept in mind is that the total exemption limit under section 80c is Rs 1,00,000/- only. This benefit is available to everyone, irrespective of his or her income levels. Thus, if you are in the highest tax bracket of 30%, and you invest the full Rs. 1,00,000/-, you save tax of Rs. 30,000.

We will now see in detail those deductions that are permissible under section 80C in this section. The following is section 80c deductions / exemption list.
Provident Fund (PF) deduction under section 80C

Any contributions to Provident Fund, Voluntary provident Fund (VPF) or savings made in Public Provident Fund (PPF Account) are eligible for income tax deduction under section 80C of Indian Income Tax Act.
Life Insurance Premiums

Any Life Insurance premiums (for one or more insurance policies) paid by you for yourself, your spouse or your children is eligible under income tax deduction under section 80C of Indian Income Tax Act.
ELSS Equity Linked Saving Schemes

Any investment made in certain Mutual Funds called equity linked saving schemes qualifies for section 80C deduction. Please note that not all mutual fund investments are eligible for this deduction. Some examples of ELSS funds are – SBI Magnum Tax Gain, HDFC Tax Saver, HDFC Long term advantage, etc.
ULIP – Unit Linked Insurance Plan

Investments made in certain ULIPs of Unit Trust of India and LIC of India are eligible for 80C deduction.
Bank Fixed deposits or Term deposits of term greater than 5 years

According to a relatively new provision amount saved in fixed deposits of term at least five years is eligible for income tax deduction under section 80C of Indian Income Tax Act.
Principal part of EMI on Housing Loan deduction under section 80C

If you are paying EMI on a housing loan, you would be aware that the EMI (equated monthly installments) consists of two parts – principal part and interest part. The principal part of the EMI on your housing loan is eligible for income tax deduction under section 80C. The interest part is also eligible for tax deduction, however not under section 80C but section 24.
Tuition Fees deduction under section 80C

Amount paid as tuition fee for the education of two children of the employee / Tax Payer is eligible for deduction under section 80C of Indian Income Tax Act.
Other 80C deductions

Amount saved in National Saving Certificate (NSC), Infrastructure Bonds or Infra Bonds, amount paid as stamp duty and registration charges while buying a new home are eligible for income tax deductions under section 80C of Indian Income Tax Act.