What is Section 80C under the Income Tax Act, 1961?

Section 80C is a section of the Income Tax Act, 1961 that allows individuals and Hindu Undivided Families (HUFs) to claim deductions on certain investments and expenses made during a financial year. Under this section, taxpayers can claim deductions up to a maximum of Rs. 1.5 lakh in a financial year.

The following are some of the investments and expenses that are eligible for deductions under Section 80C.

80C Deduction List –

  1. Investments in Public Provident Fund (PPF), National Savings Certificate (NSC), Equity Linked Saving Scheme (ELSS), and other specified mutual funds.
  2. Contributions to the Employee Provident Fund (EPF) and Voluntary Provident Fund (VPF).
  3. Payment of life insurance premiums.
  4. Payment of tuition fees for children’s education.
  5. Repayment of the principal amount of a home loan.
  6. Investments in 5-year fixed deposits with banks and post offices.
  7. Investments in Sukanya Samriddhi Yojana (SSY).

It is important to note that the maximum deduction available under Section 80C is Rs. 1.5 lakh per financial year. Taxpayers must submit relevant documents such as receipts, certificates, and investment proofs to claim deductions under this section.

In addition to Section 80C, the Income Tax Act provides for various other deductions and exemptions that taxpayers may claim to reduce their taxable income. It is recommended to consult a tax advisor or financial expert for guidance on claiming deductions and exemptions under the Income Tax Act.

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