MYITRONLINE FREE ECA CONSULTATIION
😀 Free Tax consultation with Myitronline.
MYITRONLINE SERVICES

Income Tax efiling in India for FY 2023-24 (AY 2024-25)

We have changed the way people do tax filing in India. We don’t just get your tax return filed within minutes but get you maximum refunds in shortest time.

File ITR Now Hire eCA Now

What is section 80C

Section 80C of the income tax act is an opportunity for Individuals and Hindu undivided families. They can have tax deductions up to the 1.5 lakhs under section 80C. However, other corporate firms, companies, and partnerships can not avail of the tax benefits under section 80C. Section 80C is divided into the following sections. An individual can avail of the tax benefits under section 80C for the investments and on gross earned income in a financial year.

What is section 80C?

Section 80C of the income tax act is an opportunity for Individuals and Hindu undivided families. They can have tax deductions up to the 1.5 lakhs under section 80C. However, other corporate firms, companies, and partnerships can not avail of the tax benefits under section 80C. Section 80C is divided into the following sections. An individual can avail of the tax benefits under section 80C for the investments and on gross earned income in a financial year.
For instance-
An individual needs to make investments and deductions between April 2019 to March-2020 to claim the tax deduction in the financial year 2019-20. All the subsections and applicable deductions are in detail mentioned below-

Subsections of section 80C

According to the regulations of the income tax act of India, deductions under section 80C are divided into different categories.

Tax-saving sections Eligible investments for tax deductions
Section 80-C 80C permits a deduction for the investment made in PPF, EPF, LIC premium, Equity-linked saving scheme, principal amount towards the home loan, stamp duty, and registration charges for the purchase of property, Sukanya siddhi Yojana, National saving certificate, Senior citizen savings scheme, ULIP, etc.
Section 80-CCC 80CCC permits a deduction for payment towards annuity pension plans Pension received from the annuity or Payments made towards pension plans and mutual funds.
Section 80CCD (1) Employee’s contribution towards the NPS (National Pension Yojana), Atal Pension Yojana (APY) under section 80CCD (1).
80CCD (1b) Additional deduction of Rs 50,000 is qualified for the NPS account.
80CCD (2) Employers' contribution is qualified towards the National Pension Yojana up to 10%.

Deductions under section 80C

Investment options Interest Minimum lock-in period Assured return Associated risk
ELSS 12% to 15% (relies on the fluctuation of the market) 3 years No High
NPS(National Pension Scheme) 9% to 11% Until investor get of the 60 years of age (retirement) No High
SCSS 8.60% 5 years Yes low
PPF 7.80% 15 years Yes low
NSC 7.7% 5 years Yes low
ULIP 8% to 10% (relies on market fluctuation) 5 years No Moderate
Fixed deposit Up to 8.40% 5 years Yes Low
Sukanya Samriddhi Yojana Scheme 7.50% 8 years Yes Low

List of Tax saving

    PPF(Public Provident Fund) -
  1. A contribution made towards the PPF account by an individual is eligible to tax exemption under section 80C. A public provident fund (PPF) is one of the saving schemes provided by the post office. National Savings Institute launched this scheme in 1968. The interest rate of the public-private fund is 7.1% for the current quarter and interest is calculated on the minimum balance of the public-private fund.
  2. EPF (Employees’ Provident Fund) -
  3. EPF is applicable only to those employees who have been in the service at least for 5 years. The earned returns from an employee provident fund along with the interest rate rely on section 80C for deductions.
  4. NSC (National Saving Certificate) -
  5. Earned Interest on the national saving certificate or NSC is compounded twice a year. NSC comes under section 80C and its maturity period is ranged from 5 to 10 years. Like other investments, the national saving certificate allows deductions of up to Rs.1,50,000 lakh under section 80C.
  6. ELSS (Equity Linked Saving Scheme) -
  7. Under this investment scheme is also known as a tax saving mutual fund, This tax-saving scheme has a lock period of 3 years. The returns from ELSS are tax-exempted up to a limit of ₹1 Lakh. For returns exceeding the limit, you will be subject to long-term capital gains tax at a 10% rate.
  8. SSY(Sukanya Samriddhi Yojana) -
  9. The central government has announced a scheme for Sukanya Samridhi Yojana to develop the future of women. There are multiple schemes out there for girl children. This scheme is entirely aimed at strengthening the situation of women in society. Sukanya Samridhi yojana comes under the scheme of “Beti Bachao Beti Padhao” and can be opened by the parents or legal guardians of a girl child. Sukanya Samridhi yojana benefits to ensure a good financial future of the girl child and expenses of marriage. The interest earned in this scheme is eligible for tax exemption under section 80C
  10. SCSS (Senior Citizen Saving Scheme) -
  11. Senior Citizen Saving Scheme (SCSS) strives at furnishing a recurring income for senior residents aged beyond 60 years unrestricted at a certified bank and all the post offices across India. The lock-in period of SCSS is five years. Section 80C income tax deductions cover the prevalent amount, and the interest is tax exempted.
  12. NPS (National Pension Scheme) -
  13. National Pension Scheme (NPS) is one of the finest investment programs that is governed by the Regulatory and Development Authority for the Pension Fund (PFRDA). Regulatory and Development Authority for the Pension Fund launched the National Pension System Trust (NPST) which is the registered owner of all assets under this investment plan. NPS full form is National Pension System. Only the Central Government employees were wrapped by the National Pension Scheme. Now NPS is open to all Indian citizens. NPS scheme maintains huge value for anyone working in the private sector and needs a regular post-retirement pension.
  14. Stamp duty or registration charges -
  15. Registration charges or stamp duty can be taken as the widest expense made for having the ownership of property. The Indian Government permits deductions of tax liability until the charges are paid for stamp duty and registration towards the housing procurement. The exemption will only be claimed in the year of paid duties, otherwise, it will not be eligible for contemplation under section 80C.
  16. SCSS (Senior Citizen Saving Scheme) -
  17. SCSS or senior citizen saving scheme encircles the senior citizen above 60 years to provide them a regular income at a certified bank and post offices. The SCSS has a lock-in period of five years.
  18. NABARD Rular Bonds -
  19. NABARD means National Bank for Agriculture and Rural Development. The highest amount under section 80C is entitled up to 1.5 lakh. NABARD offers the rural bonds that are eligible for tax exemption as per the income tax act of India.

Frequently asked questions

80C covers deductions on investments made for the PPF, EPF, NSC, NPS, ELSS, Equity Linked Saving Scheme, SSY, life insurance premium and ULIP, etc.

80C permits deductions for the investments made for NSC, NPS, ELSS, ULIP, PPF, SSY, equity-linked saving schemes, etc. But section 80D deduction is entitled to avail the tax benefits on the expenses occurred on health check-ups and health insurance premiums paid for self, parents, and family.

Section 80C allows Hindu undivided families(HUF) and individuals to avail the tax exemption.

Yes. Section 80C enfolds the SIP for mutual fund ELSS (equity-linked saving schemes). Individuals can avail of the deductions up to 1.5 lakhs under section 80C.

No. Taxpayers can claim HRA (House Rental Allowance) exemptions under section 10(13A) or section 80GG.

Yes. Donations made for the specific institutions and funds are eligible for exemption under section 80C.

No. There is no proof required for the deduction under section 80D.
MYITRONLINE CEO

Krishna Gopal Varshney

Krishna Gopal Varshney co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Was this article helpful?
25 out of 78 found this helpful

Contact Support

Not finding the help you need?

Submit a Ticket

Prosperous impression had delay

Email us

Reach us at info@myitronline.com