Income Tax Deductions List – Deductions on Section 80C, 80CCC, 80CCD & 80D – who is eligible to claim
Section 80C of the Income Tax Act provides deductions on specific expenditures and investments from income tax. By investing in options like PPF, NSC, ELSS, SSY, etc., you can claim deductions of up to Rs. 1.5 lakh each year under Section 80C, helping you save on income tax. Let us understand these deductions in detail:
Section 80C – Deductions and Exemptions on Investments
Section 80C is one of the most popular and favourite sections amongst taxpayers as it allows them to reduce taxable income by making tax-saving investments or incurring eligible expenses.
Section 80C deduction can be claimed only by Individuals and HUFs.
Companies, partnership firms and LLPs cannot avail the benefit of this deduction.
Up to Rs.1.5 lakh can be claimed as a deduction every year from the Gross total income.
Premium paid towards ULIP for self, spouse, and children.
Post Office Time Deposit (5 years)
Investment in 5-year time deposits at post offices.
Superannuation fund
Employee’s contribution to an approved superannuation fund.
Pension Plans
Contribution to specific pension plans like LIC’s Jeevan Suraksha, etc.
For example, an individual could invest Rs. 50,000 in PPF, Rs. 40,000 in ELSS, pay a life insurance premium of Rs. 30,000, and have an EPF contribution of Rs. 30,000, thereby utilizing the full Rs. 1.5 lakh 80C deduction limit.
Deduction Limits under section 80C, 80CCC, 80CCD(1), 80CCE, 80CCD(1B)
Section 80CCC and Section 80CCD provide deductions for the investments in the pension scheme.
The maximum deduction under Section 80C, 80CCC and 80CCD(1) put together is Rs 1.5 lakhs.
However, you may claim an additional deduction of Rs 50,000 allowed u/s 80CCD(1B) for contributions made to NPS(National Pension Scheme).
Thus, the maximum deduction limit is Rs 2 lakhs under Section 80C+80CCC+80CCD(1) + Section 80CCD(1B).
Sections
Eligible investments for tax deductions
Maximum Deduction
80C
Investment made in Equity Linked Saving Schemes, PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc.
Rs 1,50,000
80CCC
Payment made towards pension funds
Rs 1,50,000
80CCD(1)
Payments made towards Atal Pension Yojana or other pension schemes notified by government
Employed: 10% of basic salary + DA Self-employed: 20% of gross total income
80CCE
Total deduction under Section 80C, 80CCC, 80CCD(1)
Rs 1,50,000
80CCD(1B)
Investments in NPS (outside Rs 1,50,000 limit under Section 80CCE)
Rs 50,000
80CCD(2)
Employer’s contribution towards NPS (outside Rs 1,50,000 limit under Section 80CCE)
Central government employer: 14% of basic salary +DA Others: 10% of basic salary +DA
In Conclusion The overall maximum deduction under Section 80C, 80CCC and 80CCD(1) put together is Rs 1.5 lakhs. So it is advised to choose wisely your investments and insurance policies for getting maximum benefits out of these sections.
Tax saving investments u/s80C, 80CCC, 80CCD & 80D.
Income Tax Deductions List – Deductions on Section 80C, 80CCC, 80CCD & 80D – who is eligible to claim
Section 80C of the Income Tax Act provides deductions on specific expenditures and investments from income tax. By investing in options like PPF, NSC, ELSS, SSY, etc., you can claim deductions of up to Rs. 1.5 lakh each year under Section 80C, helping you save on income tax. Let us understand these deductions in detail:
Section 80C – Deductions and Exemptions on Investments
Section 80C is one of the most popular and favourite sections amongst taxpayers as it allows them to reduce taxable income by making tax-saving investments or incurring eligible expenses.
Section 80C Deductions List
For example, an individual could invest Rs. 50,000 in PPF, Rs. 40,000 in ELSS, pay a life insurance premium of Rs. 30,000, and have an EPF contribution of Rs. 30,000, thereby utilizing the full Rs. 1.5 lakh 80C deduction limit.
Deduction Limits under section 80C, 80CCC, 80CCD(1), 80CCE, 80CCD(1B)
Self-employed: 20% of gross total income
Others: 10% of basic salary +DA
In Conclusion The overall maximum deduction under Section 80C, 80CCC and 80CCD(1) put together is Rs 1.5 lakhs. So it is advised to choose wisely your investments and insurance policies for getting maximum benefits out of these sections.
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