Tax Deductions Under Section 80C.....!!!
Sign in
  • BLOG
  • Editor's Picks
  • |
  • Technology
  • |
  • Entrepreneurship
  • |
  • Business
  • |
  • Finance
  • |
  • Career
  • |
  • New India
  • |
  • Entertainment
  • |
  • Others

    • Tax Deductions under Section 80C.....!!!
    Section 80C, even a layman who doesn’t have thorough knowledge about Income Tax knows about this. Under Section 80C of the Income Tax Act, government gives tax benefits to certain financial products in order to encourage savings. The investments made in these products are eligible for Tax Exemption up to a limit of Rs 1 lakh. If your annual income is more than 500000 and you invest Rs. 1 lakh in this investments you save Rs 33,000 in taxes.

    The concern is how many of you know about the investments that come under Section 80C. People are aware only about ULIPs; this scenario is because insurance companies are promoting their products massively to increase the sales. But understand ULIP is not the only product that offers Tax benefit under section 80C.

    Generally people think about investments only in the month of February or March because they are concerned only about Tax saving, they never bother to understand the productivity of the investments. In this scenario there is a possibility of losing money that you have saved without paying tax.
     
    For Example: Mr. X’s annual income is Rs.300000. His total tax liability is Rs. 14000. By investing Rs. 100000 in any investments that come under Sec-80C he can save Rs. 10000. But by making an investment in a wrong product he may lose more than 20000. This is where you need to concentrate.
     
    While choosing a place to park your investment you need to be very careful because the effectiveness of investments depends on many factors such as investment objective, age, risk aversion, economic conditions etc.
     
    Investments Comes Under Section 80C
    Below given is the list of investments that falls under section 80C. This will help you to chose the best one that better suites your needs. 
    1. Life Insurance Premium
    2. Unit Linked Insurance Plans (ULIP)
    3. Equity Linked Savings Schemes (ELSS)
    4. Public Provident Fund (PPF)
    5. Provident Fund (Contribution by the Employee)
    6. NSC - National Savings Certificate
    7. Fixed Deposit for 5 years
    8. Home Loan Repayment (Principal)
    9. Stamp Duty and Registration Charges
    10. Tuition Fee Payment
    11. Post Office Time Deposit Account
    12. Infrastructure Bonds
    13. Senior Citizen's Savings Scheme
    start_blog_img