Personal Finance News
3 min read | Updated on February 14, 2024, 13:06 IST
SUMMARY
Under Section 80C, a maximum deduction of ₹1.5 lakhs is permitted each financial year. Many Indian taxpayers view Section 80C as a useful tax-saving strategy.
A Guide to Tax Savings Under Section 80C
The end of a financial year can be problematic, especially if you don’t understand how to save your income tax. However, Section 80C of the Income Tax Act is an excellent tool for Indian taxpayers who wish to reduce their taxable income and save money. Section 80C offers a wide range of investment options and deductions under certain expenses that you can leverage to avail tax deductions. This article explains the key aspects of Section 80C; keep reading to find suitable investment opportunities to save tax.
Section 80C of the Income Tax Act is a clause that allows you to claim deductions from your taxable income for specific expenses and investments. With the help of Section 80 C, you can essentially reduce your taxable income by a maximum of ₹1.5 lakhs in every financial year; the maximum limit includes deductions under other subsections like 80CCC and 80CCD(1) as well. In certain cases, additional deduction of ₹50,000 can be claimed under Section 80CCD(1b).
Any individual or Hindu Unified Families can claim deductions under Section 80C. However, companies, partnership firms, and LLPs cannot avail deductions under this section.
There are numerous investment options under 80C, including the following:
Apart from the investment options mentioned above, you can claim tax deductions for the following expenses as well:
Now that you understand Section 80C, you can choose investment instruments suitable for you and claim deductions to reduce your tax burden.
Although Section 80C serves an excellent tool for taxpayers, you are advised to consider your overall financial goals and risk appetite while making any financial decisions. By planning early, you can maximise your savings.
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