Who can Claim Income Tax Deduction under Section 80C

What are different Income Tax Deduction under section 80C of Inome Tax Act, What’s the limit of Income Tax deduction u/s 80C and investment options as per section 80C of Income Tax Act? Section 80C gives different investment options for claiming Income Tax Deduction. Maximum Deduction amount total income under section 80C is Rs 1Lakhs. Read List of Income Tax Deduction/Exemption under section 80C, 80CCG, 80D, 80DD, 80E,80G, 80GG to 80U

Also Section 80C prescribes different deduction limits and conditions only after fulfilling those conditions person can claim deduction from his income. Deduction can be claimed in respect of payment of Life insurance premium, deferred annuity, contribution to provident fund, and subscription to certain equity shares or debentures. Section 80C of the income tax act provides deduction in respect of specified amount described or paid by the assessee. Read List of Approved Investment for Income Tax Deduction

CONDITIONS:

The following are the main conditions of section 80C-

  • Deduction is available only to an Individual or a HUF.
  • Deduction is available on the basis of specified qualifying investment/ contribution/ deposits/ payments made by the taxpayer during the previous year.

AMOUNT OF DEDUCTION:

The maximum amount deductible under section 80C is Rs. 1, 00,000/- for any sums paid or deposited in the previous year by the assessee.

Income Tax section 80C Tax Saving Investment options for Income Tax Saving and different conditions for claiming these income tax deduction benefits. Click Here For Details Analysis of section 80C of the Income Tax 

  • Investment in Tax Saving Mutual Fund Plan or contribution by an individual to any pension fund set up by any Mutual Fund. Read List of Top Performing Tax Saving Mutual Fund.
  • Income Tax Deduction for Life Insurance Premium by individual for himself and his family with Life Insurance Corporation or any other insurer.
  • Income Tax Deduction for Payment of Deferred annuity for an individual and his family
  • Income Tax Deduction for Payment or contribution/investment to Provident fund, recognised provident fund, approved superannuation fund.
  • Payment or Contribution/investment Unit-linked Insurance Plan 
  • Investment in pension fund set up by, the National Housing Bank
  • Payment of tuition fees for full-time education of any of in the case of an individual, any two children.For Detail Click Here
  • Repayment of installment of loan or borrowed money taken for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property”.For Detail Click Here
  • Term Deposit for 5  year with with a scheduled bank  and scheduled bank”For Detail Click Here
  • Investment in 5 year term deposit by Post OfficeFor Detail Click Here
  • Investment in the Bonds of National Bank for Agriculture and Rural Development (NABARD)For Detail Click Here
  • Investment in an account under the Senior Citizens Savings Scheme Rules, 2004