Question: What Is 80c In Income Tax?

What is 80c and 10 10d?

Under section 80C, premiums that you pay towards a life insurance policy qualify for a deduction up to ₹1.5 lakh, while Section 10(10D) makes income on maturity tax-free if the premium is not more than 10% of the sum assured or the sum assured is at least 10 times the premium.

In the example, your deduction will be Rs..

Can I show my parents LIC for tax exemption?

An individual can only claim tax benefit under Section 80C of the Income Tax Act, 1961, on life insurance policy(s) bought in the name of self, spouse or children. … Hence, your father can claim deduction under Section 80C, in respect of premium paid on policy taken in your name.

What is the 80c limit for 2019 20?

First you can claim standard deduction of Rs 50,000 for FY 2019-20. You can invest Rs 1.5 lakh under section 80C in any of the eligible tax saving avenues. You can also invest Rs 50,000 under section 80CCD (1B) in the National Pension Scheme.

What is the tax slab for 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22Taxable incomeTax Rate (Existing Scheme)Tax Rate (New Scheme)Rs. 5,00,001 to Rs. 7,50,00020%10%Rs. 7,50,001 to Rs. 10,00,00020%15%Rs. 10,00,001 to Rs. 12,50,00030%20%Rs. 12,50,001 to Rs. 15,00,00030%25%3 more rows

How can I save tax on FY 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

What is 80c and 80d in income tax?

Section 80C and 80D of Income-tax Act entitles specified taxpayers to claim deductions for the entire amount paid to the insurance company for specified insurance schemes.

How can I save my tax after 80c?

1) Tax saving with NPS under Section 80CCD (1B): Taxpayers can save additional tax by investing up to ₹ 50,000 in NPS. This is over and above the benefit, they can claim on contributions under Section 80c. They also have the option of utilizing NPS for the ₹ 1.5 lakh limit of Section 80c.

Can I save tax more than 1.5 lakh?

The most popular avenue for tax-saving is section 80C of the Income Tax Act. Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount.

Can I invest more than 1.5 lakhs in ELSS?

First, when you plan to invest more than Rs. 1.5 lakh in ELSS funds, it is important to remember that you can reduce your income only by up to Rs. 1.5 lakh to save tax. … If your long-term capital gain (LTCG) on an ELSS fund exceeds Rs 1 lakh annually, 10% of that amount will be taxed.

Is EPF considered under 80c?

For a salaried employee, the monthly contributions made towards employees’ provident fund (EPF) also qualifies for tax benefit under Section 80C.

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

How can I save tax beyond 1.5 lakhs?

Beyond the contribution of Rs 1.5 lakh under Section 80C, you can invest an additional Rs 50,000 in NPS which can be claimed as tax deduction under Section 80CCD. This gives you the option of claiming tax deduction of up to Rs 2 lakh every year by investing in NPS.

Is 80c removed in Budget 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … Four new tax slabs have been introduced, making it a total of seven slabs.

Is FD tax free?

Tax deduction on FD interest The interest earned under an FD is taxable under “income from other sources”. The amount invested under 80C of the Income Tax Act is exempt but interest earned under such investments is taxable.

What is the current 80c limit?

Rs 150,000At present, the deduction under Section 80C is available up to Rs 150,000. The eligible investments include life insurance policies, Public Provident Fund (PPF), National Savings Certificate (NSC), five-year notified tax-saving bank deposits and many more.

What is the rebate for AY 2020 21?

From the AY 2020-21 rebate u/s 87A (only for Individual) is available only if the Net Total Income < Rs. 5,00,000/-. The quantum of maximum rebate will be Rs. 12500/-....Income tax slabs.Taxable incomeTax RateRs. 2,50,000 to Rs. 5,00,0005%Rs. 5,00,000 to Rs. 10,00,00020%Above Rs. 10,00,00030%1 more row•Aug 10, 2020

What comes under 80c in income tax?

Section 80C allows individuals and HUFs to claim a tax deduction of up to Rs. 1,50,000 from their gross total income for investments in these schemes. You can invest in any of the following: Life Insurance Plan (Term Plans / Traditional Plans / ULIPs, etc.)

Can I invest more than 1.5 lakhs in 80c?

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act.

What is difference between 80c and 80d?

Deductions on Section 80D and 80C 65,000. Another point is that Section 80C incorporates investments made in an extensive range of financial instruments, such as small savings schemes, mutual funds, life insurance premium etc., whereas Section 80D is meant entirely for deductions on the health insurance premiums paid.

Is 80c removed?

Most of the commonly available deductions such as section 80C (investments made in PF, NPS etc.), 80D (payment of medical insurance premium), standard deduction of Rs 50,000 etc. have been proposed to be removed but here is one tax benefit that can still be claimed by the individuals under the proposed new tax regime.

How is Section 80c deduction calculated?

Maximum deduction you can avail is 10% of salary (in case the taxpayer is an employee) or 20% of gross total income (in case the taxpayer being self-employed) or Rs 1.5 lakh – whichever is less. Until FY 2016-17, maximum deduction allowed was 10% of gross total income for self-employed individuals.