Under Section 80C of the Income Tax Act 1961, any individual or organized Hindu family can claim tax exemption on investments up to Rs 1.5 lakh.
New Delhi. When we file income tax returns and discuss investments to save tax, often the most importance is given to Section 80C of Income Tax. Under Income Tax 1961, a taxpayer under Section 80C can avail tax exemption on investments up to Rs 1.5 lakh in a financial year. You have to remember here that the benefit of exemption on investment under Section 80C will be given only in the old tax regime. In the new tax regime, taxpayers are not benefited from it.
Exemption on Section 80C of Income Tax Act:
- Under Section 80C of Income Tax Act 1961, any individual or organized Hindu family can claim tax exemption on investments up to Rs 1.5 lakh. Under this rule, people coming in 30 percent tax slab can save a maximum tax of Rs 46,800.
- Under Section 80C, maximum investment of Rs 1.5 lakh within one financial year in EPF, PPF, Equity Linked Saving Scheme, Mutual Fund, Sukanya Samriddhi Yojana, National Savings Certificate, 5 Year Fixed Deposit Scheme, National Pension System, Senior Citizen Saving Scheme Tax tax exemption can be availed.
- Under Section 80C of the Income Tax Act, a person can claim for exemption in tax in lieu of expenses like school fees, home loan payments, insurance premiums for his two children.
