Section 80C
This query is : Resolved
25 July 2009
Sir,
Pls guide me what is the maximum limit of deductions u/s 80 C at present.
Pls tell me the investments on which these deductions can be claimed.
Regards
Narendra Singh
Pls guide me what is the maximum limit of deductions u/s 80 C at present.
Pls tell me the investments on which these deductions can be claimed.
Regards
Narendra Singh
25 July 2009
Maximum limit u/s. 80C Rs. 1 lac.
25 July 2009
The total limit under Section 80C is Rs 1 lakh. Included under this heading are many small savings schemes like NSC, PPF and other pension plans. Payment of life insurance premiums and investment in specified government infrastructure bonds are also eligible for deduction under Section 80C
The investments that fall under Section 80C can be broadly classified as contributions / investments to:
Provident Fund
Public Provident Fund
Life insurance premium
Pension plans
Equity Linked Saving Schemes of mutual funds
Infrastructure bonds
National Savings Certificate
Besides these investments, the payments towards the principal amount of your home loan are also eligible for an income deduction. Education expense of children is increasing by the day. Under this section, there is provision that makes payments towards the education fees for children eligible for an income deduction
In 2008, Senior Citizens Saving Scheme 2004 and the Post Office Five Year Term Deposit Account have been added to the basket of saving instruments under Section 80(C) of the Income Tax Act.. An additional deduction of Rs.15,000 under Section 80D has been allowed to an individual who pays medical insurance premium for his/her parent(s).
As given above, the limit under this section 80C is Rs 100,000, irrespective of how much you earn and under which tax bracket you fall. Also, there are no sub-limits under this overall Rs 100,000 amount. Therefore, if you like, you can invest the entire amount in ELSS or NSCs. If you are repaying a home loan and the principal repayment amounts to Rs 100,000, then you can claim the entire amount as a deduction and thus no further savings will be needed
The investments that fall under Section 80C can be broadly classified as contributions / investments to:
Provident Fund
Public Provident Fund
Life insurance premium
Pension plans
Equity Linked Saving Schemes of mutual funds
Infrastructure bonds
National Savings Certificate
Besides these investments, the payments towards the principal amount of your home loan are also eligible for an income deduction. Education expense of children is increasing by the day. Under this section, there is provision that makes payments towards the education fees for children eligible for an income deduction
In 2008, Senior Citizens Saving Scheme 2004 and the Post Office Five Year Term Deposit Account have been added to the basket of saving instruments under Section 80(C) of the Income Tax Act.. An additional deduction of Rs.15,000 under Section 80D has been allowed to an individual who pays medical insurance premium for his/her parent(s).
As given above, the limit under this section 80C is Rs 100,000, irrespective of how much you earn and under which tax bracket you fall. Also, there are no sub-limits under this overall Rs 100,000 amount. Therefore, if you like, you can invest the entire amount in ELSS or NSCs. If you are repaying a home loan and the principal repayment amounts to Rs 100,000, then you can claim the entire amount as a deduction and thus no further savings will be needed
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Should I report my US salary for January, February, March in Schedule FA?
- Can a partnership firm become partner in a LLP ?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- TDS on purchase of value vouchers for employees ?
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
