Section 80C
This query is : Resolved
25 July 2009
Sir,
Pls guide me what is the maximum limit of deductions u/s 80 C at present.
Pls tell me the investments on which these deductions can be claimed.
Regards
Narendra Singh
Pls guide me what is the maximum limit of deductions u/s 80 C at present.
Pls tell me the investments on which these deductions can be claimed.
Regards
Narendra Singh
Ratan Sharma
(Expert)
25 July 2009
Maximum limit u/s. 80C Rs. 1 lac.
CS Mitesh Mehta
(Expert)
25 July 2009
The total limit under Section 80C is Rs 1 lakh. Included under this heading are many small savings schemes like NSC, PPF and other pension plans. Payment of life insurance premiums and investment in specified government infrastructure bonds are also eligible for deduction under Section 80C
The investments that fall under Section 80C can be broadly classified as contributions / investments to:
Provident Fund
Public Provident Fund
Life insurance premium
Pension plans
Equity Linked Saving Schemes of mutual funds
Infrastructure bonds
National Savings Certificate
Besides these investments, the payments towards the principal amount of your home loan are also eligible for an income deduction. Education expense of children is increasing by the day. Under this section, there is provision that makes payments towards the education fees for children eligible for an income deduction
In 2008, Senior Citizens Saving Scheme 2004 and the Post Office Five Year Term Deposit Account have been added to the basket of saving instruments under Section 80(C) of the Income Tax Act.. An additional deduction of Rs.15,000 under Section 80D has been allowed to an individual who pays medical insurance premium for his/her parent(s).
As given above, the limit under this section 80C is Rs 100,000, irrespective of how much you earn and under which tax bracket you fall. Also, there are no sub-limits under this overall Rs 100,000 amount. Therefore, if you like, you can invest the entire amount in ELSS or NSCs. If you are repaying a home loan and the principal repayment amounts to Rs 100,000, then you can claim the entire amount as a deduction and thus no further savings will be needed
The investments that fall under Section 80C can be broadly classified as contributions / investments to:
Provident Fund
Public Provident Fund
Life insurance premium
Pension plans
Equity Linked Saving Schemes of mutual funds
Infrastructure bonds
National Savings Certificate
Besides these investments, the payments towards the principal amount of your home loan are also eligible for an income deduction. Education expense of children is increasing by the day. Under this section, there is provision that makes payments towards the education fees for children eligible for an income deduction
In 2008, Senior Citizens Saving Scheme 2004 and the Post Office Five Year Term Deposit Account have been added to the basket of saving instruments under Section 80(C) of the Income Tax Act.. An additional deduction of Rs.15,000 under Section 80D has been allowed to an individual who pays medical insurance premium for his/her parent(s).
As given above, the limit under this section 80C is Rs 100,000, irrespective of how much you earn and under which tax bracket you fall. Also, there are no sub-limits under this overall Rs 100,000 amount. Therefore, if you like, you can invest the entire amount in ELSS or NSCs. If you are repaying a home loan and the principal repayment amounts to Rs 100,000, then you can claim the entire amount as a deduction and thus no further savings will be needed
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