Tax Section 80c

Eligible deductions under section 80c.
Tax section 80c. Section 80c includes mutual funds insurance premium tax saver fds ppf and several other schemes. Section 80c deductions on investments. Total 80c limit as per the income tax act 1961 is rs 1 5 lakh per financial year.
Section 80c of the income tax act came into effect on 1 april 2006. This section allows them to claim tax deductions up to rs. You can claim a deduction of rs 1 5 lakh your total income under section 80c.
A taxpayer any huf or individual can claim various deductions on their total income under section 80c of the income tax act and its allied sections like 80ccd and 80ccc to reduce the taxable income and thereby bring down the tax outgo. Section 80c of the income tax act prescribes several instruments that not only offer income tax saving benefits but also provide financial returns throughout the policy period. 80ccd covers contributions to india s national pension system nps 80c limits the maximum limit for tax saving under section 80c is rs 1 5 lakh.
It basically allows certain expenditures and investments to be exempt from tax. Among the various tax saving options most individuals prefer to claim tax deduction under section 80c of the income tax act 1961. 1 50 000 from their gross total income for certain investments and payments.
Section 80c allows individuals and hufs to claim tax deduction of up to rs. 80ccc governs contributions to specific policies which pay a pension or annuity.