Best investment policies at lowest premiums. Top performing investment plans, better than mutual funds Plans with zero commissions and lowest charges in the market. Among the various tax-saving options, most individuals prefer to claim tax deduction under Section 80C of the Income Tax Act, This deduction can be claimed for premiums paid towards insuring self, spouse, dependent children and any member of Hindu Undivided Family.
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Best investment policies at lowest premiums. Top performing investment plans, better than mutual funds Plans with zero commissions and lowest charges in the market.
Among the various tax-saving options, most individuals prefer to claim tax deduction under Section 80C of the Income Tax Act, This deduction can be claimed for premiums paid towards insuring self, spouse, dependent children and any member of Hindu Undivided Family. A parent or legal guardian of a girl child, who has not reached the age of 10 years, can open this account.
Sukanya Samriddhi Yojana account can be opened for two girl children one account per girl child and can be extended to a third if twins are involved. PPF accounts have a maximum deposit limit of Rs. The money that you put into a PPF account will be locked-in for a period of 15 years.
Partial withdrawals are permitted after 7 years. Now, an essential point to be noted about equity linked savings scheme is that they have a mandatory lock-in period of three years from the date of investment.
If you are considering investing in this scheme, make sure to invest for longer periods like five to seven years as they are equity schemes. Equity schemes are an ideal option for wealth creation over a long period. The condition associated with tax saver fixed deposits is that they come with a lock-in period of 5 years.
Premature withdrawal is not allowed under this investment. Interest earned on tax saver fixed deposits, however, are taxable and will be deducted at source. Stamp Duty and Registration Charges : While buying a property, one of the largest expenses you will have to bear is the stamp duty and registration charges. To give taxpayers some relief, the government has included these expenses under Section 80C of the Income Tax Act, The deduction can only be claimed once the property construction is complete and you have legal possession of the house.
This scheme has a tenure of 5 years. To participate in the Senior Citizens Saving Scheme, an individual has to be at least 60 years of age. Those who have taken VRS voluntary retirement scheme can opt for it after the age of National Savings Certificate : To encourage taxpayers to park their money in National Savings Certificate scheme, the government has allowed tax deductions to be claimed under Section 80C on the investments made in it.
Interest earned on National Savings Certificates are liable to tax. However, if this interest is reinvested, it will be eligible for deduction under Section 80C.
The interest rate on this scheme is similar to that of tax savings fixed deposits, PPF and other fixed income earning instruments. To claim this tax benefit, construction of the property should be complete. If you transfer the property before the end of 5 years from the year you had taken its possession, no tax benefits will be awarded. Additionally, the amount claimed as deduction in the earlier years shall become taxable in the year that the property is transferred.
They are: Tax Saving Sections.
List of Income Tax Deductions for Individuals 2019-20
Age 60 and above Senior Citizen Rs 1 lakh This deduction can be claimed only if you have a prescription for such medical treatment from a specialist doctor. If treatment is being received in a government hospital, then it must have name and address of that hospital as well. Section 80E: Interest on loan taken for higher education If you have paid interest in FY on an education loan taken for the higher education i. Wadhwa says, "There is no limit on the maximum amount claimed as deduction. However, this deduction is available for up to 8 years starting from the year in which interest payment began or until interest is paid in full. An additional deduction of Rs 50, can be claimed if the following conditions are satisfied: a The loan taken by you was sanctioned between April 1, and March 31, ; b The home loan taken does not exceed Rs 35 lakh; c The value of house purchased by you does not exceed Rs 50 lakh; d The house for which loan is taken is your first house. Section 80G: Donation to eligible funds, charitable funds etc.
Deduction Under Section 80C
How to claim deductions under section 80C to 80U while filing ITR1