How to Save your Taxes by Investments as per Sec 80C

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How to Save your Taxes by Investments as per Sec 80C

After teaching you how to save Taxes via HRA, Today we are going to teach you how you can save your Income tax by investing in some schemes as per 80C, 80C is a group of multiple Investment scheme, so we are going to tell you each of them plus the guidelines to be followed to get deduction as per section 80C.

1. Deduction through salary like: PF / VPF / Med Insurance (80D)

Inputs are directly taken from salary deductions. No need to submit any documents for these deductions, SO no proof required to be submitted.

2. Life Insurance Premium  ( 80C )

All premium receipts issued by the Insurance Company.

Guidelines to be followed :-

  • Policy from any approved company by IRDA (Insurance Regulatory & Development Authority)
  • Tax benefit on premium payment will be restricted to max. of 10% of the sum assured (if the policy is taken on or after April 01, 2012)
  • Tax benefit on premium payment will be restricted to max. of 20% of the sum assured (if the policy is taken prior to April 01, 2012)
  • Late payment fees charged will not be considered as premium paid.
  • Receipts should be of the current financial year only .
  • Policy can be in the name of individual, spouse, & children.
  • Any premium due and paid after the proof submission due date need to claimed by the individual at the time of filing return with the I T Dept.

3. PPF : Public Provident Fund ( 80C )

Guidelines to be followed :-

  • Public Provident fund can be in the name of individual, spouse & children.
  • Maximum contribution allowed under this scheme is Rs.150000/-
  • Any premium due and paid after the proof submission due date need to claim by the individual at the time of filing return with the I T Dept.
  • Receipts should be of the current financial year only

4. Fixed Deposit in a Scheduled Bank ( 80C )

Guidelines to be followed :-

  • Term deposits for a minimum period of 5 years with a scheduled bank are eligible for deduction.
  • Certificate should be in the name of employee

5. ULIP/ Mutual Funds / ELSS ( 80C )

Guidelines to be followed :-

  • Receipts / Statements / Bonds / Certificates should be of the current financial year only
  • Any Installment / SIP due and paid after the proof submission due date need to claimed by the employee at the time of filing return with the I T Dept.

6. Infrastructure Bond/ NSC ( 80C )

Guidelines to be followed :-

  • Receipts / Statements / Bonds / Certificates should be of the current financial year only.
  • Infra Bond Term should be > = 3 years
  • Any Installment / SIP due and paid after the proof submission due date need to claimed by the employee at the time of filing return with the I T Dept.

7. Children Education fees

Guidelines to be followed :-

  • Tuition fees paid supported by receipts issued by the school, college, university or educational institution.
  • Only amount mentioned as ‘Tuition Fee’ in the fee receipt will be considered for deduction
  • Receipts should be of the current financial year only
  • Donations, Capitation fees, Uniform fee, Sports fee etc are not allowed

8. Deposit under Senior Citizens Saving Scheme

Guidelines to be followed :-

  • Receipts should be of the current financial year only
  • This is applicable if the employee is a Sr. Citizen (age = > 60 years)

9. Five Year Time Deposit Scheme in Post Office

Guidelines to be followed :-

  • Time deposit for a period of 5 years with a post office is eligible for deduction.
  • The monthly deposits into Recurring Deposit Account (in Post Office) will not be considered

10. Housing Principal Registration/ Stamp Duty ( 80C )

 

Guidelines to be followed :-

  • Provisional Certificate :– should be of the current Financial Year
  • Sale Deed / Stamp Duty :– should be of the current Financial Year.

11. Sukanya Samriddhi Account Deposit Scheme (SSAD) ( 80C )

Guidelines to be followed :-

  • Maximum deduction is allowed under this section is within the overall Sec 80C limit of Rs.150000/-.
  • Sukanya Samriddhi account should be in the name of the daughter only.
  • Receipts should be of the current financial year only

I hope  You like our these tax saving articles do visit our site for more such articles . To know more about 80 C you can visit departments website and read bare Act from there

Thank you

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