- Tax Saving Options U/s 80C, 80CCC, 80CCD, 80CCG
- Five Year Fixed Deposit:
- Sukanya Samriddhi Yojana(SSY) :
- Life Insurance :
- Public Provident Fund(PPF) :
- Equity Linked Saving Scheme(ELSS) :
- Stamp Duty and Registration Charges :
- Senior Citizens Savings Scheme (SCSS):
- National Savings Certificate:
- Home Loan Principal Repayment :
- 80C Sub Sections
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Tax Saving Options U/s 80C, 80CCC, 80CCD, 80CCG
Those who are hurry to pay Income Tax for the financial year(FY) 2018-19 and want to minimize tax burden, here are plenty of tax saving options under Section 80C of Income Tax Act 1961. According to the section 80C and its subsections 80CCC, 80CCF, 80CCD , an individual and HUFs can claim tax rebate from their gross income for certain payments and investments as stated below.
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Five Year Fixed Deposit:
Tax saver fixed deposits with lock-in period of 5 years can help to reduce to tax burden. For these fixed deposits, premature withdrawal is not allowed. Many banks offer tax saving fixed deposits which can help tax payer to get tax relief upto 1.5 lakh under section 80C.
Features and Limitations of Tax Saving Fixed Deposits
- Premature withdrawal is not allowed.
- Minimum investment is Rs.100 and further in multiples of Rs.100
- Applicable for Individual and HUF
- In case of joint account, first holder can avail tax deduction.
- Interest earned on FD, 10% per annum of TDS is deducted from the interest.
Sukanya Samriddhi Yojana(SSY) :
One of the tax best saving option is Sukanya Samriddhi Yojana. PM Narendra Modi launched a scheme called ‘Sukanya Samriddhi Yojana (SSY)’, that means ‘Girl Child Prosperity Scheme’. Investment made under this is eligible for tax deduction U/s 80C of the IT Act, 1961. A parent or legal guardian of 10 years old a girl child can open this account. Only two accounts can be opened two girl under this SSY. This scheme is intended to stop discrimination of girl child and to ensure the survival and protection of them. The maximum limit for every financial year is Rs.1,50,000/-.
Life Insurance :
Premiums paid toward all life insurance policies are eligible to get tax benefits U/s 80C of the IT Act, 1961. Premium paid to the LIC polices for self, spouse, dependent children and any member of Hindu Undivided Family can be claimed under section 80C upto the maximum limit Rs.1,50,000/-.
Public Provident Fund(PPF) :
Contribution made under is eligible for tax deductions under Section 80C of income tax act 1961. Public Provident Fund account has a maximum deposit limit of Rs. 1,50,000/- per annum. Locked-in period PPF account is 15 years. Partial withdrawal is permitted after 7 years only.
Equity Linked Saving Scheme(ELSS) :
Investment made under Equity Linked Saving Scheme comes under section 80C for tax deduction. The locked-in period is three years for partial withdrawal. ELSS can help a taxpayer upto Rs.1,50,000/-. ELSS is one good option for with creation.
Stamp Duty and Registration Charges :
One has to pay Stamp Duty and Registration charges while purchase of house property. The stamp duty and registration fee paid comes under Section 80C of IT act 1961. The maximum amount is allowed Rs.1,50,000/- to deduct under 80C. Individual and a HUF can both avail this deduction.
Senior Citizens Savings Scheme (SCSS):
Individuals, who are above 60years can avail tax benefit under section 80C. This SCSS scheme offers regular income to the post retirement persons. This is good option those who are not bear the risk in in equities. The maximum amount allowed to deduct under section 80C is Rs.1,50,000/- to avail tax benefit. The tenure of the Senior Citizens Savings Scheme (SCSS) is five years. Premature withdrawal is allowed, but only after one year .
National Savings Certificate:
Investment made under this National Savings Certificate scheme comes under section 80C of IT Act. This NSC scheme can be opened any post office. This saving bond encourages subscribers to invest while saving income tax. The maximum allowed investment is Rs.1,50,000/- to avail tax benefit under section 80C.
Home Loan Principal Repayment :
The principal amount repaid to home loan comes under 80C IT Act to get the tax benefit. To avail tax benefit tax payer should complete the house construction. The individuals who sold or transfer the house property before end of five years, no tax benefits will be benefited. The maximum amount Rs.1,50,000/- is allowed to deduct from Section 80C to avail tax benefit.
80C Sub Sections
Section 80CCC :
Payment made towards the pension plans and annuity plans of insurance can avail tax benefit under section 80CCC. The maximum allowed cap under section 80C is Rs.1,50,000/-.
Section 80CCD :
Contributions of individuals and not HUFs made to the Pension Scheme of Central Government will benefit under 80CCD. The maximum cap under section 80C is Rs.1,50,000/- to vail tax benefit.
Section 80CCF :
Investments made toward long-term government-approved infrastructure bonds can be availed benefit under section 80CCF. The maximum investment is allowed U/s 80C is Rs.20,000.
Investments made under a government-approved equity savings scheme are eligible to avail tax benefit under 80CCG. The maximum allowed investment under this section 80CCG is Rs.25,000/-