Part 80C of the Earnings Tax Act is among the hottest and easy methods of managing your taxes. When you’ve got not used your tax advantages nicely to this point, studying about earnings tax advantages out there beneath Part 80C legal guidelines could be an vital first step.
Many earnings tax consultants emphasise on the significance of earnings tax advantages out there beneath Part 80C — usually thought of one of the well-liked methods to save cash amongst salaried people.
Here is a information to varied tax advantages you possibly can declare to handle your tax outgo utilizing Part 80C of the Earnings Tax Act:
How a lot earnings tax can one save beneath Part 80C?
At present, Part 80C supplies for deduction of as much as Rs 1.5 lakh in taxable private earnings in a monetary yr beneath sure situations.
You may simply scale back as much as Rs 1.5 lakh out of your whole taxable earnings making use of Part 80C norms. The Earnings Tax Division returns any extra taxes paid by you based mostly in your investments in life insurance coverage, provident fund (EPF and PPF), Nationwide Pension System (NPS), Nationwide Financial savings Certificates (NSC) and tax-saving fastened deposits.
Listed below are some investments that are eligible for claiming earnings tax advantages beneath Part 80C:
- Premium paid to subscribe to or renew a life insurance coverage coverage
- Unit-Linked Insurance coverage Plans (ULIPs)
- Tax-saving mutual funds or Fairness-Linked Saving Scheme (three years of lock-in interval)
- Provident fund (Staff’ Provident Fund/Public Provident Fund)
- Fee of stamp obligation on buy of home property
- Fee of principal quantity of a house mortgage
- Nationwide Financial savings Certificates (NSC)
- Tax-saving fastened deposit (five-year maturity)
- Small financial savings schemes corresponding to Senior Citizen Financial savings Scheme and Sukanya Samriddhi
- Fee of tuition charges (paid to a college, faculty or college) for as much as two youngsters
A salaried particular person can use a mixture of those choices to say an total deduction as much as Rs 1.5 lakh in taxable earnings.