How can I save tax when my 80C is full?
Recommended ways of saving taxes under Sec 80C,80D and 80EE
- Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income. …
- Buy Medical Insurance, maximum deduction allowed is Rs. …
- Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.
What can be saved under 80C?
5 tax-saving investment avenues under Section 80C
- Public Provident Fund (PPF) This is a 15-year lock-in account that can be opened with a bank or post office. …
- ELSS funds. …
- Insurance plans. …
- Tax saving FD. …
- Sukanya Samriddhi Yojana.
What is the best investment for 80C?
Best Tax-Saving Investments Under Section 80C
| Investment | Returns | Lock-in Period |
|---|---|---|
| Unit Linked Insurance Plan (ULIP) | Returns vary from plan to plan | 5 years |
| Public Provident Fund (PPF) | 7%-8% | 15 years |
| Sukanya Samriddhi Yojana | 8.5% | N/A |
| National Savings Certificate | 7%-8% | 5 years |
How much tax we can save under 80C?
Section 80C is a popular tax-saving deduction where you can save up to a maximum of Rs 1.5 lakh per financial year, using certain investments and expenses.
What is maximum tax saving?
What is the Maximum Tax Saving That You Can Avail?
| Deductions | Max Amount (Rs.) |
|---|---|
| Standard deduction | 50,000 |
| Section 80C | 150,000 |
| Section 80CCD(1B) NPS | 50,000 |
| Section 80D | 25,000 |
What income is tax free?
Applicable for all individual tax payers:
Rebate of up to Rs 12,500 is available under section 87A under both tax regimes. Thus, no income tax is payable for total taxable income up to Rs 5 lakh in both regimes. Rebate under section 87A is not available for NRIs and Hindu Undivided Families (HUF)
Can we claim parents LIC in 80C?
Hence, no deduction will be available in respect of premium paid by him on policy taken in the name of his parents, parents of his spouse and his brother/sister. 6) Total premium eligible for deduction under section 80C will amount to Rs. 55,000 (Rs.
How can I save tax on 2020 21?
Tips for Saving Tax in FY 2020-21
- Invest in Equity-Linked Saving Scheme (ELSS)
- Invest in the National Pension Scheme.
- Invest in Sukanya Samriddhi Yojna.
- Know When to Opt for the New Tax Regime.
Can I invest more than 1.5 lakh in 80C?
According to chartered accountants, this is necessary to claim the full tax-saving benefit of Rs 1.5 lakh, which is the maximum allowed under section 80C. However, in order to do this you may have to end up investing at least Rs 500 more than Rs 1.5 lakh i.e. Rs 1,50,500 in case of a lump sum investment.
Is FD tax free?
A tax-saving fixed deposit (FD) account is a type of fixed deposit account that offers a tax deduction under Section 80C of the Income Tax Act, 1961. Any investor can claim a deduction of a maximum of Rs. 1.5 lakh per annum by investing in a tax-saving fixed deposit account. … Interest earned is taxable.
Can I show my parents LIC for tax exemption?
3. Tax exemptions on LIC policies under section 80D: Under section 80D tax exemption is allowed for people who deposit a certain amount of money with the LIC for the support of a handicapped person. … If the parents are senior citizens, then up to Rs20,000 is permitted for the tax deduction.
How can I save tax on 15 lakhs?
If you invest up to 1.5 lakh: If you have invested in Public Provident Fund, Employees Provident Fund, Sukanya Samriddhi Scheme, life insurance or health insurance premium, tax-saving fixed deposits from banks or post offices or any other provisions that allow tax exemption to the tune of Rs 1.5 lakh, you would still …
How can I save tax on 20 lakhs?
Tax Exempted Salary Components
- Meal Coupons.
- Car Maintenance.
- EPF (Contribution by Employer)
- NPS (Contribution by Employer)
- Gift voucher.
- Mobile Phone and the Internet Bill Reimbursement.
- Newspaper/Journal Allowance.
- Children Education/Hostel Allowance.
How much is 80C limit?
1,50,000 limit without making any investments. Section 80C not only encourages investments in savings schemes but also offers tax relief on some of your expenses.