Section 80C Deductions

Under the provision of Section 80C of the Income Tax Act 1961 the department allows certain investments and expenditure to be tax exempted if these investments and expenditure fall in the category of Section 80C. The maximum limit is set to Rs. 100,000 and can be claimed from any of the below mentioned items:

1. Provident Fund or Public Provident Fund contributions
2. Premium payments of Life Insurance Policies
3. Pension Plans investments
4. Investing in the Equity Linked Savings schemes (ELSS) of mutual funds
5. Investment in specified government infrastructure bonds
6. National Savings Certificates (interest of past NSCs is reinvested every year and can be added to the Section 80C limit)
7. All housing loan payments including registration fee or stamp duty if any.
8. Tuition fees for children towards school or college or university or similar institution. (Only for 2 children)

Section 80D – Medical Insurance Premiums

Medical insurance policies which are well known as Medi claim Policies have been in much usage these days and investing in these policies provides tax deduction up to Rs 30,000. This is in addition to Rs.1,00,000 savings. Senior citizens can claim up to Rs. 20,000. This can be claimed on any premium paid on medical insurance for self, spouse, parents and children.

Categories: Income Tax Planning, Income Tax Saving Tips, Save Income Tax, Section 80 C, Section 80D, Tax Deductions, Tax Exempted Income, Tax Free Income, Tax Laws
Tags: Equity Linked Savings Schemes, Life Insurance Policies, National Savings Certificates, Public Provident Fund, Section 80C, Section 80D