About 80 C Tax Deduction Scheme


#1

What are the types of fixed income services that comes under the 80 C tax deduction scheme?


#2

Fixed income investments are investments where investors are promised a fixed return. Few examples are FD, savings account, Government securities, corporate bonds etc.

There are few fixed income services that are covered under section 80C. They are post office scheme, national savings certificate, PPF, EPF, and fixed deposit for more than 5 years etc.

However, before you invest in fixed income instruments for tax savings, you must make sure that it falls under the limit of 80C.


#3

Hi,

You can claim tax deduction under Section 80C of the Income Tax Act for many investments including the Employee Provident Fund (EPF), Public Provident Fund (PPF), National Savings Certificate (NSC), payment towards children’s tuition fees, ELSS, National Pension System (NPS), Life Insurance policy premiums, and deposit in the Sukanya Samriddhi Yojana, etc. Under section 80C, a deduction of Rs. 1,50,000 can be claimed from your total income for FY 2017-18. This deduction is allowed to an individual or a Hindu Undivided Family. For more information, read this blog post - https://blog.bankbazaar.com/your-income-tax-exemption-guide-for-the-financial-year-2017-18/.

Cheers,
BB Expert


#4

Section 80C work for the life saver for tax payer. The Income Tax Act, 1960 has provided Section 80C, 80CCD, 80CCC, 80CCCE which holds different criteria of benefits which you will avail during filling your Income Tax.


#5

Section 80C is an Income Tax saving section that has been introduced by the Finance Act, 2005 . Broadly speaking, this section provides a deduction from total income in respect of various
investments/ expenditures/payments in respect of which tax rebate u/s 88 was earlier available.

Equity Linked Savings Scheme or ELSS are tax saving mutual funds. These funds invest a minimum of 65% of their assets in stock market. You can earn an income tax rebate for investments up to Rs 1.5 lakhs by investing in ELSS funds under section 80c of income tax act.