Articles deals with deduction under Section 80C of the Income Tax Act and explains who is eligible for deduction, Eligible Investments, Limit for deduction, who can invest for whom and time period for investment. 

Background for deduction under Section 80C of the Income Tax Act (India) / What are eligible investments for Section 80C:

Section 80C replaces the Section 88 with more or less same investment mix available in Section 88.  The new section 80C has become effective w.e.f. 1st April, 2006.  Even the section 80CCC on pension scheme contributions was merged with the above Section 80C.  However, this new section has allowed a major change in the method of providing the tax benefit.  Section 80C of the Income Tax Act allows certain investments and expenditure to be tax-exempt.  One must plan investments well and spread it out across the various instruments specified under this section to avail maximum tax benefit. Unlike Section 88, there are no sub-limits and is irrespective of how much you earn and under which tax bracket you fall.

The Maximum limit of deduction under section 80C is Rs 1.50 lakh from Financial year 2014-15 / Assessment Year 2015-16. Before FY 2014-15 the limit was Rs. 1 Lakh. Under this heading many small savings schemes like NSC, PPF and other pension plans. Payment of life insurance premiums and investment in specified government infrastructure bonds are also eligible for deduction under Section 80C.

Most of the Income Tax payee try to save tax by saving under Section 80C of the Income Tax Act.  However, it is important to know the Section in toto so that one can make best use of the options available for exemption under income tax Act.   One important point to note here is that one can not only save tax by undertaking the specified investments, but some expenditure which you normally incur can also give you the tax exemptions.

Besides these investments, the payments towards the principal amount of your home loan are also eligible for an income deduction. Education expense of children is increasing by the day. Under this section, there is provision that makes payments towards the education fees for children eligible for an income deduction

Section 80C of the Income Tax Act is the section that deals with these tax breaks. It states that qualifying investments, up to a maximum of Rs. 1.50 Lakh , are deductible from your income. This means that your income gets reduced by this investment amount (up to Rs. 1.50 Lakh), and you end up paying no tax on it at all!

This benefit is available to everyone, irrespective of their income levels. Thus, if you are in the highest tax bracket of 30%, and you invest the full Rs. 1.50 Lakh, you save tax of Rs. 45,000. Isn’t this great? So, let’s understand the qualifying investments first.

Investments Qualifying for deduction under section 80C

Provident Fund (PF) & Voluntary Provident Fund (VPF) : PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF). Interest is tax-free. Must Read-EPF Act 1952 vis-á-vis Income Tax Act – Tax Treatment of PF Dues 

Public Provident Fund (PPF): Among all the assured returns small saving schemes, Public Provident Fund (PPF) is one of the best. Interest is Compounded Yearly and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 1,50,000. A point worth noting is that interest rate is assured but not fixed. Read more- All about PPF and Income tax benefit

Life Insurance Premiums: Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.  Read More-Life Insurance Premium- Tax benefit on Payment and Maturity 

Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C. Read More-Section 80C – Investment in Equity Linked Savings Scheme (ELSS) 

Home Loan Principal Repayment: The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”, which presents a full analysis of how you can save income tax through a home loan.-Income Tax Benefits from House Property and Loan

Stamp Duty and Registration Charges for a home: The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

Sukanya Samriddhi Account : Sukanya Samridhi Account’ can be opened at any time from the birth of a girl child till she attains the age of 10 years, with a minimum deposit of Rs 1000. A maximum of Rs 1.5 lakh can be deposited during the financial year. Interest on this account is fully exempt from tax  in the year of accrual as well as in the year of receipt. Sukanya Samriddhi Account meaning Girl Child Prosperity Scheme is a special deposit scheme launched by Prime Minister Narendra Modi on 22 January 2015 for girl child. The scheme of Sukanya Samriddhi Account came into effect via notification of Ministry of Finance. The notification details are Notification No. G.S.R.863(E) Dated 02.12.2014. Scheme will be governed by ‘Sukanya Samriddhi Account Rules, 2014’.

  • Per girl child only single account is allowed. Parents can open this account for maximum two girl child. In case of twins this facility will be extended to third child
  • Minimum deposit amount for this account is ₹ 1,000/- and maximum is ₹ 1,50,000/- per year
  • Money to be deposited for 14 years in this account.
  • Interest  is calculated on yearly basis ,Yearly compounded.
  • Passbook facility is available with Sukanya Samriddhi account.
  • From FY 2014-15 the interest earned on account will be tax exempted. As per Finance Bill 2015-16.

Read More- Sukanya Samriddhi Account- Tax & Other benefits

National Savings Certificate (NSC) (VIII Issue): 

NSC is a time-tested tax saving instrument with a maturity period of  Five and Ten Years.  Interest is Compounded Half Yearly. While the minimum investment amount is Rs 100, there is no maximum amount. Premature withdrawals are permitted only in specific circumstances such as death of the holder. Investments in NSC are eligible for a deduction of upto Rs 150,000 p.a. under Section 80C. Furthermore, the accrued interest which is deemed to be reinvested qualifies for deduction under Section 80C. However, the interest income is chargeable to tax in the year in which it accrues.

Infrastructure Bonds: These are also popularly called Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds can also be included in Sec 80C deductions.

Pension Funds – Section 80CCC: This section – Sec 80CCC – stipulates that an investment in pension funds is eligible for deduction from your income. Section 80CCC investment limit is clubbed with the limit of Section 80C – it means that the total deduction available for 80CCC and 80C is Rs. 1.50 Lakh. This also means that your investment in pension funds upto Rs. 1.50 Lakh can be claimed as deduction u/s 80CCC. However, as mentioned earlier, the total deduction u/s 80C and 80CCC can not exceed Rs. 1.50 Lakh.

5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.

Senior Citizen Savings Scheme 2004 (SCSS): A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. Interest Senior Citizen Savings Scheme 2004 is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax. The account may be opened by an individual,

  1. Who has attained age of 60 years or above on the date of opening of the account.
  2. Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement.
  3. No age limit for the retired personnel of Defence services provided they fulfill other specified conditions.

5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) qualifies for tax saving under section 80C. Interest is compounded quarterly but paid annually. The Interest is entirely taxable.

NABARD rural bonds: There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.

Unit linked Insurance Plan : ULIP stands for Unit linked Saving Schemes. ULIPs cover Life insurance with benefits of equity investments.They have attracted the attention of investors and tax-savers not only because they help us save tax but they also perform well to give decent returns in the long-term.

Others: Apart form the major avenues listed above, there are some other things, like children’s education expense (for which you need receipts), that can be claimed as deductions under Section 80C.

So, where should you invest?

Like most other things in personal finance, the answer varies from person to person. But the following can be the broad principles:

Provident Fund: This is deducted compulsorily, and there is no running away from it! So, this has to be the first. Also, apart from saving tax now, it builds a long term, tax-free retirement corpus for you.

Home Loan Principal: If you are paying the EMI for a home loan, this one is automatic too! So, it comes as a close second.

Life Insurance Premiums: Every earning person having dependents should have adequate life insurance coverage. (For more on this, please read “Life after life – Why you should buy Life Insurance”) Therefore, life insurance premium payments are the next.

Voluntary Provident Fund (VPF) / Public Provident Fund (PPF): If you think that the PF being deducted from your salary is not enough, you should invest some more in VPF, or in PPF.

Equity Linked Savings Scheme (ELSS): After the above, if you have not reached the limit of Rs. 1,50,000, then you should invest the remaining amount in Equity Linked Savings Scheme (ELSS).

Equities provide the best, inflation-beating return in the long term, and should be a part of everyone’s portfolio. After all, what can be better than something that gives great return and helps save tax at the same time?

When to Invest for 80C deduction?

Many of us start looking for investment avenues only in February or March, just before the Financial Year is getting over. This is a big mistake! One, you would end up investing your money without putting proper thought to it. And secondly, you would end up losing the interest / appreciation for the whole year. Instead, decide where you want to make the investments, and start investing right from the beginning of the financial year – from April. This way, you would not only make informed decisions, but would also earn the interest for the full year from April to March.

(Republished with amendments)

Author Bio

Qualification: CA in Practice
Company: Taxguru / Sandeep Kanoi & Associates
Location: Mumbai, Maharashtra, IN
Member Since: 27 Feb 2017 | Total Posts: 711
A Blogger by Passion and a Chartered Accountant by Profession. View Full Profile

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828 Comments

  1. ajay says:

    1. Whether the life insurance premium paid by me for my dependent parents(mother and father) can be covered under section 80C of income tax?

    2. Is there any other way to covered deduction tax of the life insurence paid by me for my dependent parents (mother/father/both)?

  2. AKRITI JAIN says:

    A PERSON HAVE A HOUSE PROPERTY WHICH IS BY NAME OF HIS SPOUSE. TAKEN ON LOAN WHICH IS JOINT A/C WITH HIS SPOUSE. SPOUSE IS NO INCOME AND LOAN REPAY BY INCOME OF HUSBAND. CAN HUSBAND CAN CLAIM DEDUCTION OF INTEREST AMOUNT UPTO RS. 150000/- U/S 24 AND PRINCPLE AMOUNT OF LOAN U/S 80c UPTO LIMIT OF RS. 100000/-

  3. jaideep says:

    TAXGURU DOES NOT REPLY ! WHATS THE USE !!! NOT EVEN ONE REPLY FOR THREE YEARS !!!!
    WAKE UP TAX GURU !!!! IF YOU CAHRGE ONE RE. PER REPLY ALSO YOU WOULD HAVE MADE LOT OF MONEY WITH INTEREST …. ALSO IF YOU INVEST IN PPF TAX FREE EARNING!!! TAX GURU ARE YOU THERE !!!!

  4. jestin says:

    my autitor said max one lack rupees only can adjust sec by 80c,
    it is true, i spend lic insurance and home loan (principle only)total 127000

  5. satish d sawant says:

    Sir,
    My wife’s investment in 80 C has crossed the limit of 1 Lac. Can I show the surplus of LIC premiums paid by my wife. The life policies is also in her name. Can i claim rebat under 80C.

    Pleas help.

  6. Raj says:

    Dear Sir/Madam,
    Exemption under sec.80c of Rs.1,00,000/- and conveyance allowance of Rs.800 p.m. from long time back. As per current economic growth on every field I feel the exemption amount will be increases.
    I hope government take necessary action about this.
    Thanks,

  7. vikram says:

    hello,
    can any one suggest me to reduce income tax for 180000. i dont have pf and any insurance, and i need to submit documents in feb 2013.in which way can i overcome this problem.

  8. k mohan says:

    I have a house which is under construction, taken a loan and repaying monthly both Principle & Interest to the bank.

    Now I want to sell that home under construction, in this case what I am eligible to get the benefit of principle paid during the FY U/s 80C or not and what are the other liabilities of taxes comes like , capital gain on the sale proceeds of the home and any other …

    Please advise me in this regard.

  9. Ritesh Jain says:

    Hello,
    I have purchased a flat in Nov-2009, agreement was done in the same year in December-2009, I got possession in Aug 2010, Can i claim tax benefit under 80c in stamp duty registration charges this year (12-13)

  10. Ritesh Jain says:

    Hello,
    I have purchased a flat in Nov-2009, agreement was done in the same year in December-2009, I got possession in Aug 2010, Can i claim stamp duty registration charges this year (12-13)

  11. neha says:

    sir, can i know that if father paid insurance premium for himself then he can transfer this premium deduction u/s 80c to his child or not? & why?

  12. Sameer says:

    Sir ,

    In my company there is a limit of 15000/- that can be claimed under u/s 80. But what about the expenses more then this amount done on dependants ? Do we have any section where we can claim . Please advice.

    Thanks in advance.

  13. S Sinha says:

    I want to know what proof is needed to claim income tax rebate for stamp duty & registration charges. Kindly help.
    Moreover, the bank has done a loan insurance is it acceptable under section 80C.

    Santosh

  14. Himanshu Wadhwa says:

    hi

    my package is 2,24,700 and this time i have OT for 10,800 and tax has been deducted from my salary worth 1,178. so, i want to confirm will it be ok if i will take a FD from post office for 25,000.
    please revert asap.

    thanks
    himanshu

  15. Naveen says:

    Sir,

    I have been deposited Rs.5000/- in post office during f.y.11-12. Can i claim these amount as deduction u/s 80C. Let me know please. Thanking you sir.

  16. Raman says:

    I received arrears of medical reimbursement allowance from previous years. Against same, I have already incurred enough medical expenses in those years.
    can i claim set off now subject to limit of Rs.15000 per year ?

  17. Pawan Soni says:

    Sir, I have purchased a land and get Housing Loan from SBI, Jaipur. Please tell me can i get income tax rebate on this land purchase loan under Income tax Act under section 80 C & 24 for interest which i have paid to bank.
    Thanking you.

  18. milan says:

    dear sir can we get the benefit of tax exemption for principal and interest paid for a loan for house repairing purpose from a credit co-op society made up by government employees.

  19. Nilesh Sutar says:

    I have taken home loan from SBI. To cover the loan repayment SBI have deducted SBI life insurance. Whether this amount eligible for deduction u/s 80 C

    With regards

    Nilesh

  20. Ritesh Paliwal says:

    Sir

    I have purchased a Flat with possession date in Dec’13 along with my wife and younger brother.

    We have taken a Home lone of Rs.5,000,000/- from PNBFL and started paying EMI of RS.51000/-, Please help me with the information about the income tax saving, is it possible to get any tax refund on principal and interest amount for three of us.

    Looking for your kind support in this regards.

    Regards
    Ritesh

  21. Anand kumar Apala says:

    interest earned by senior citizen beyond the exemption of 2.4 lakhs of income per year can a gift be given to the grand children for education or marriage?

  22. BIPIN says:

    My father has taken home loan and i m co-borrower in that. my dad is paying installment from his account but i am depositing money in his account from my salary. my father’s income is not covered under tax slab but my income comes so can i get benefit of sec. 80c here in this case ?

  23. Sanjiv says:

    Taxguru,
    I have a small doubt regarding Employer’s contribution towards PF.
    Consider, My Salary = 10 L per annum.
    My contribution to PF = 30000 per annum
    Employer’s contribution to my PF = 30000 pa
    Now, my contribution to PF is considered under section 80C for deductions for tax exemption. So, effectively, i can invest 1L – 30K = 70K for maximum tax exemption under 80C.
    Question:
    1. Am i correct here??

    Now, Employer’s contribution to my PF account = 30000 pa. This is also a part of my salary as mentioned in my offer letter.
    Questions:
    1.Will this 30000 p.a. be taxable to me?
    2.Will my taxable income reduce to 10L – 30000(My PF contri) – 30000(Employer’s PF Contri) = Rs. 9,40,000 considering i do not make any investments for tax exemptions?
    3. Will this 30000 be considered in 80C deductions making my effective 80C limit as 1L – 30000 (My PF) – 30000(employer’s PF) = 40000?

  24. Manik says:

    Dear Sir,

    I have bought a Insurance policy of Rs.100000 base plan and with this plan a rider of Rs. 100000 and for that i have paid premium Rs 20000. Will i get 100% tax benefit of this premium amount

  25. Priti Agarwal says:

    Sir,
       I want to know whether limit of 100,000 allowed as deduction under section 80c has been increased to 2,00,000 for financial year 2012-2013
      Do reply to my mail , pls do needful.

  26. mahendra says:

    i want to know that my investment is exceed above 1 lac under sec 80 c ( LIC , Tuition fees, PF, loan principal amt) , what should be the best way to save tax.

  27. piyush says:

    hi, 
    i just want to know if we earn money from stock market and at the end of financial year we saw loss or profit than how can we show the same in ITR ……….

  28. rakesh says:

    dear sir, i m confused about my return. i get my salary as “prefessional fees”  after TDS deduction already. now ione of my friend said that i can show my personal expenditure like travel or so in this return form to save tax…sir, in which column i should show my expenditure?? and hoe would i show the detail of that,i mean travel+ restaurant+other expenditure??? or what do u advise i should not show these in my return?? i m confused….help

  29. Gayatri says:

    If suppose housing loan interest not shown while preparing form 16 due to some problems but the loan is already taken in the previous assessment then whether it will be taken into account when filing the income tax refund

  30. prem says:

    R/Sir     i am a govt empoley  in railway  i alloted a railway  qatter [house]  with i puracse a housing lone why rebat housing lone or qater rent rebat

  31. ravi says:

    If mother is paying the insurance premium for daughter, can daughter claim the insurance premium paid as an exemption from her income.

  32. Deepak Gupta says:

    Hi,

    I have taken a home loan against a 3 bhk flat around 4 years back.
    I bought this flat from builder in pre-launched. Now I have done the entire payment (except stamp duty & registration) of my flat and got the possession.

    When I am asking to get home loan rebate (on principle & interest), my employer is asking me to produce registered sale deed agreement.
    Since all the flats are not completed yet I am unable to register my flat.

    I wanted to know that is it really mandatory to have sale deed agreement in order to get income tax rebate on home loan. if yes do i have any alternate?
    FYi. I have all documents except registered sale deed agreement i.e bank loan sanction letter, sale agreement, possession letter, Bank certificate for re-payment.

    Deepak

  33. PRASAD says:

    Whether NSC taken in the name of the Individual & mother qualify for IT under 80C fully for
    the individual, if the mother is unemployed ?

  34. sasikumar says:

    arrear DA for the period from1/1/2009 to31/3/2011 credited to general  provident fund  can be considered for deduction under section 80C of income tax

  35. Hari KIshore Singh says:

    Sir I have one question. I have taken a Endowment Plus ( T. No. 802) single premium plan for Rs 30000 with risk cover of Rs 45000. Can I get a deduction for the same within the limit of Rs 100000?

  36. Raghavan K says:

    I am planning to buy a residential PLOT. Can i get registration charges & stamp Duty exemption under any section of I.T?

  37. KETAN says:

    HUF FIRM PAID 120000 PREM OF KARTA,S INSURANCE . SIR THIS PREM IS ELIGIBLE FOR TAX REBATE, AND ALSO THIS POLICY’S MATURITY IS TAX FREE ?

  38. purna chandra palei says:

    i have drawn monthly salary as pay Rs15860+Gp 4200+D.A13039+HRA1003=Rs34102.But i have paid HRA@5000 pm.&p. taxRs2500 annually..Then what will be my monthly income tax which will be deducted from my salary . 

  39. RK Menon says:

    Poornima: For the financial year 2012-13, you are liable to pay I.T on Rs.80000/-@10% if your salary is Rs.2.8 lacs/annum. You can invest upto Rs. 80000/- under section 80 c and avoid paying of taxes.
    Soniya: if your salary is upto Rs.200000 annually you are out of I.T for the year 2012-13.

    RK Menon (Financial Adviser)

  40. Soniya says:

    Hello Sir,

    I have a query to ask you regarding Investment in NSC.

    My age is 27 yrs, If my Annual Income is 2,00,000 & I invest Rs.1,00,000 in NSC, then how much will be deducted u/s 80c ? I want to know the calculation. Will it be the whole Rs.1,00,000 to be deducted u/s 80c ? Or 20% of my Investment…? 

    Please help…Thanks

  41. Edison says:

    I purchased icici pru tax growth on 30 march 2011 from icici bank, mira road, with clear instructions that i want this for fy2011-2012, now they have completely disregarded my instructions and have given the units as of april 2012, the clerk of icici bank says his CA friend says that i can claim deductions for fy2011-2012 as the cheque given to them is dated 30.03.12 as it takes time to process , but the intention was clear for the product for the fy11-12. I need clarification for the same.

    Thanking you,
    Edison

  42. Preeti says:

    Dear itsjiny, you can get extra exumption on Interest on House loan uptill Rs. 150000/- and this amount is apart from 80C’s deduction of Rs. 100000/- so overall you can get 2.5 lac exumption from this scheame.

  43. itsjiny says:

    HI,

    If the income is around 4 lacs. What is the best investment under 80 C?
    if i take housing loan and get deduction under it upto 1 lac – is it over and above the investment i make in ppf (70 K)?
    Pl guide. Thanks.

  44. SK Rajeev says:

    Sir,

    I Have a LIC Policy for 18000/- per year. Can I claim for Rs 5000 for myself and the rest 13000 for my wife income tax under 80C.

    Thank You

  45. Pallavi says:

    My mother is not working. My father is working. His salary is 5,000/-. So can I use my Mother’s and Sister’s LIC amount for my Income Tax Return filing under 80C deduction..

  46. DEEPAK SHARMA says:

    Both my mother and i file separate income tax. i am married and independent.now,my mom took a insurance policy in my name and paid vide cheque 50000/- from her account.can she claim 80c exemption on it?

  47. g p khanduri says:

    i have  lic premium rs.50000/-annual and gpf rs. 50000/-annual. therefore 100000/- limit under section 80c is over. can i  avail children education allowance deduction rs.2400/- for two children?

  48. Md. Yousuf Ali says:

    Dear sir, I have deposited Rs. one lack in deccan gramina bank, hyderabad for the period of 7 year & 7 days, is it helps in tax saving?

  49. Ramashis Hota says:

    I am PSU employee. Whether can I get the benefit of NSC purchased by me in the name of my wife in the F.Y. 2011-12 U/S 80 C of the Income Tax Act.

  50. shyam says:

    Hi sir, I have a query regarding LIC policy payment through cheque.I have made a payment through cheque on 31st march 2011 and have got the premium receipt showing dated 31st march 2011 but the cheque was encashed by LIC on 7th April 2011 through my Saving bank Account. Will i be eligible to claim deduction under section 80C for the financial year 2010-11? Thanks a lot for spreading your valuable knowledge.

    Regards shyam

  51. bharath kumar says:

    dear sir,
    I would like to ask “is the increase in ppf limit to rs. 1,00,000 will be applicable to A.Y2012-13 for the purpose of deduction under sec 80C, if not then from which financial year,
    i wiil waiting for the reply

  52. Rashi says:

    i have paid stamp duty registration fees on 17/01/2012. However i am taking possession on 01/04/2012. Can i avail the deduction in F.Y. 2012-13? I have taken the housing loan for this house purchase the repayment has already started. from which year i can start availing the benefit of that?

  53. shahid says:

    hi to all tax payer i can help you to deduction from 80c from income tax act just buy an insurance policy that can give you 70percent returns and you life also will will be cover from risk but be care full that if you want to invest in such know the all details and i will help you from this you can contact my 91 8546992056 and shahidtherobinhood @gmail.com for all are welcome
    Bangalore(karnataka)

  54. BIJI ALEX says:

    Sir,
    I am investing 1500/- per month as RD in Post Office, the total tenure period is 60 month cum 5 years. One year investment comes as 18000/-.
    Can I show this amount to the Form 16 A for the IT filling. Please advice.
    If so, then please share the printed notification shared by the Income Tax Department.

  55. Ravindra says:

    Dear Sir,
    I have already home loan & it’s shown tax benefit but I have purchase one more home this year hence we have claim this new home registration & Stamp Duty for I.T benefit. u/s 80 c

    Please update me.

    Thanx & regards,
    Ravindra

  56. Prashant Sonar says:

    If the life insurance premium & Post recuring  is paid by son by his account or ecs systems for his father then son can’t claim the deduction, but can father claim deduction for this investment?

  57. Awdhesh Prasad says:

    I have contribute to Employees State Insurance Corporation (ESIC) through my salary, guide me for deduction claim u/s 80C or 80D

  58. Ravi A says:

    Sir,

    I have purchase Falt in Jan-2012, please tell me and i have paid Stam duty to govt.can i take banifit against Income Tax exemption under 80c.
    Please update me.

  59. DEBASISH BOSE says:

    If I invest Rs. 37000/- in single premium of LIC’s BIMA BACHAT Policy, am I entitled to get full exemption on the premium paid under 80C? Accounts Deptt of my office says that I will only get 20% of the premium as tax rebate.

    Kindly enlighten me on this issue please.

    D BOSE

  60. VKG says:

    Sir,
    i am getting my 50% HRA from company & same 50% is paying to company for giving accommodation. But sir, my parents are also living at rent and i am paying rent for his rents. Can i save my income tax, please suggest.

  61. JYOTHI says:

    I invest rs. 50,000 as Term Deposit for 5 yrs. in SBT during february.  I claimed this amt as exemption under section 80 c.  is it admissible?  will the interest to be included in next years income?  what are the consequences if I withdraw the amount before 5 yrs.

  62. JYOTHI says:

    I invest Rs. 50,000 as Term Deposit for 5 yrs in SBT on February. I claim this amount for deduction under 80 c.  Is it admissible.  Will the interest to be added in next years income. what are the consequences if we withdraw the amount before 5 yrs.

  63. geetha says:

    Sir, my total income per month is 50075/-. how much should be my saving for claiming income tax benefit. Please let us know the celing limit for LIC, Medical bills, Health Insurance, PPF, Housing loan, Infrastructure bond.
    Thanks in advance

  64. Anshuman Verma says:

    Dear Sir, I want to claim tax on capital gains from sale of land through purchase of house. Is the saving applicable even when new asset is financed through loan or I need to repay the loan from the proceeds of sold land to claim exemption.
    Also let me know how to claim exemption on record(through I-T return filing ..? or what)

    thanks

  65. CHETAN V ANGOLKAR says:

    Dear Sir, Kindly provide information about income tax exemption under section 80C or other sections for the amount paid on service tax 2.25% and vat 1% (on the aggrement value of Flat) in the present financial year 2011-12, the possession is also in this financial year 2011-12. Your expedited reply would be helpful to me.

  66. Amit Kumar says:

    I am maintaining a D-mat account with my wife name as 1st holder. can I claim IT tax rebate on infrastructure bonds held in the name of my wife as 1st name and my name as 2nd holder.

  67. sweta says:

    we purchase resale flat of rs.2381000/- and pay the stamp duty, registration, so could we get the excemption u/s 80c
    if yes, then how much excemption

  68. Ashim Kumar says:

    My investment in 80 C has crossed the limit of 1 Lac. Can I allow my wife to show the surplus of LIC premiums paid by me on my life policies as her investment to claim rebate under 80C

  69. Ashim Kumar says:

    My investment in 80 C has crossed the limit of 1 Lac. Can I allow my to show the surplus LIC premiums paid by me on my life policies as her investment to claim rebate under 80C

  70. BHASKARANSUBRAMANIAN says:

    BOTH HUSBAND AND WIFE WORKING IN GOVT. SERVICE.  WE TAKING HOUSING LOAN FROM H.D.F.C  BANK IN JOINTLY .  BOTH  SHALL   DEDUCT PRINCIPAL  AND INTEREST FULLY.  

  71. NIKHIL says:

    Will I get Tax benefit on Stamp duty and Reg fees for this year (2011-12) under sec 80c if possession is after 1 year(Next financial year)? And Im also paying VAT and Service tax on property. Are they also exempted. if yes under which section?

  72. ABHISHEK RATHI says:

    sir, in want to know that whether my father in law will get the benefit of section 80c under income tax act, if he pays the life insurance premium of  my policy as well as of my wife’s policy ?

  73. narendra says:

    Sir 
    1.  Are 5 years bank fixed deposite interest amount is taxable?
    2. If yes, the interest amount is calculated as income per year OR on maturity? 
    How to calculate ? 

  74. M.P. SINGH says:

    I have taken a housing loan which is in joint names of mine and my wife. My wife is also a working lady. The house property is also in joint names. The EMI is being paid totally out of wife’s salary account due to operational convenience and household expenses are being met totally out of my account and there is an understanding to this effect between us. Can I claim benefit of tax under Section 24 & 80C for the whole amount of interest & principal.

  75. suniloc says:

    sir,
             i have saved up to Rs.o1 lac  for income tax benefits during current  financial yr…kindly communicate whether section -80c of deductable items such as ulip inked insurance plans of sbi   is included in the margin of  Rs.01 lac.. or not.?
      02)    sir,  .if it is beyond the limit of Rs  one lac   what is time limit for submission of return?

  76. suniloc says:

    sir,
     i have saved up to o1 lac  for income tax benefits during current financial yr…kindly communicate whether section -80c of deduction is included in the margin of  Rs.01 lac.. or not.

  77. Jiten says:

    I have purchased a flat in non municipal cooperation (gram panchayat) and have not taken loan from any bank. I have an agreement with the builder for paying the amount as EMI and at 0% Interest. Can I claim it as housing loan payment under 80C. If yes what document do i need to submit to save TDS.

  78. Sachin says:

    I had gon all the comments mentioned above but didn’t found answer of the below question Can husband get tax benifit on the premium paid for the wife’s life insurance policy.The policy is on the name of wife.But the name is before marriage name and contains the address same as of me? .If yes what documents needs to be submitted.

    1. admin says:

      In respect of payment husband can claim the deduction. Supporting documents can be marriage certificate and your marriage invitation card.

  79. Anil says:

    Kumar Ashish ,

    I am also looking for the same information.

    property/loan is on both wife and husband name and EMIs have been paid by husband from citi bank can my wife claim tax exemption u/c 24 or 80c ??

    if no , what are the penalties for claiming interest like that ?

    Regards
    Anil

  80. Kumar Ashish says:

    Dear Sir,
    Gretting for the day.
    A query regarding housing loan. If husband and wife both are working in private sector and come in tax. Housing loan had taken on the name of husband and wife. But payment made by husband bank account. Interest component are above 2 lacks. Can husband and wife both take deduction on the interest component.

    Regards,
    Kumar Ashish

  81. Amit Surpuriya says:

    For Application of All Infrastructure Bonds (80CCF) Contact – Amit Surpuriya – 9850873688 – Pune
    KSHITIJ FINANCIAL SERVICESMutual Fund | Infrastructure Bond | 54EC Capital Gain Bonds | Company Fixed Deposit | Medi-Claim 

  82. P R SARKAR says:

    Kindly intimate me :
    1. Money invested in the name of parent/children –
        Does the money received is taxable in the hands of parent/children ?
    2. IIn case, the money is invested in joint name with parent/children (1st holder) & taxpayer (2nd holder):     Can the income on investment be shown as income of 1st holder & the 2nd holder can get rid of tax burden?

    regards

  83. Chadra N says:

    Hi,
    My father was expired and my mother is a housewife and i am paying LIC for her as she is dependent on me, can i take tax exemption by providing her LIC Receipts of her if yes is there any document i need to attach for that.

  84. Giri says:

    Me and my wife have taken a home loan. Also we have SBI Life Insurance (SBI RINN Raksha) for Funding of Home Loan Insurance Cover. Please advise can we claim exemption for paying the Premium amount.
    This coverage is paid against another loan by the same banker that of home loan. We are paying interest for the Insurance Loan. Can we get exemption for both the premium paid and the interest for the insurance loan ?

  85. Anup says:

    Regarding Stamp Duty and Registration Charges –> Can husband and wife both claim the Stamp Duty and Registration Charges, in case of joint home laon?

  86. Girish says:

    I am purchasing a site from BDA and shall pay registration charges and stamp duty of Rs 2 Lakh , will the amount paid for registration charges and stamp duty for site purchase extemted under section 80 C , Please advise.

  87. Giri says:

    Me and my wife have taken a home loan. Also we have SBI Life Insurance for Funding of Home Loan Insurance Cover. Please advise can claim exemption for paying the Premium amount.
    This is coverage is paid against another loan by the same banker that of home loan. We are paying interest for the Insurance Loan. Can we get exemption for both the premium paid and the interest for the insurance loan ?

  88. divya says:

    Hi
    can i show my husbands lic policy for tax deduction.As he is remitting 30000each in 4 installments.can we both show the same policy in deduction(as 2 installments for me2 installments his)

  89. Tanuja says:

    Hi
    It is mentioned stampduty for purchase of residential property can be claimed under 80C.
    Is that applicable for purchase of residential site(KHB) ?

    Next need suggestions for best option which will help in tax saving as well as my parents and child.

    Thanks.

  90. sathish says:

    hi,

    this is sathish, i planned invest Saving s certificate in Indian bank for Rs. 50000 for the 5years period. This certificate comes under 80c. i have some questions regarding tax. please clarify the following points.

    How much amount will deduction on 50000. whether whole amount or some percentage of amount only.
    can i show savings certificate for next year also, is that possible.
    please advice some best plans for tax savings.

    Thanks in advance
    sathish

  91. Kumar Ashish says:

    Dear Sir,

    I have a question about investment.

    If husband and wife both are working (private sector) and tds deducted of both. Will husband show the investment for tax exemption, if the investment as like LIC is on the name of his wife. His wife will not show the investment in her organisation.

    Please reply as soon as possible.

    Regrds,
    Kumar Ashish

  92. Kishen says:

    Infra Bond gives an additional deduction of Rs.20,000 under Section 80CCF and not under 80C.With this the total deduction will be Rs.1,20,000(1,00,000 from 80C and 20,000 from Infra bonds)

  93. Shyam says:

    Hello Sir,

    Recently i have bought a house,for which i had to pay 8 lacs and then remianing was loan from Bank.My EMI’s have not started yet and will start in next financial year.Please let me know if the rs 8 lacs can have the benefit under section 80C.Thanks!

    Shyam

    1. Sravani says:

      Rohit,
      U will not get deduction to loan on education u/s. 80C. Only the fee upaid to the institution will be allowed as deduction and that too such amt is to be for u, ur spouse or ur children. Bt Interest on education loan will be allowed as deduction u/s. 80E. This loan mst be for higher studies of urs or ur spouse or ur children whether in India or abroad.

    2. Sravani says:

      hey small correction. 80C tuition fee payment to ur children will only be eligible. It is not eligible if payment is for urself or to ur spouse. Children can be ur legal children or even adopted children.

  94. Prashanth Pai says:

    Dear All,
    Pls tell me whether i can avail tax exemption for stamps duty and registration charges for purchase of land. If yes which section of the act.

    with regards
    Prashanth Pai

  95. arup says:

    Dear sir / Mamadam

    I have submitted may ppf withdraw from in my previous company virgin mobile ltd on feb 11 still it is pending as norms it takes sum 45 working days and I have spoken in virgin mobile they have told me that they have submitted the form in pf office on 28 mar 2011 but still it is pending

  96. Sourav Chakraborty says:

    I think ELSS should be placed higher in the list, particularly for young professionals who will prefer moderate-to high risk investments with much higher returns. FD, PPF are more logical to middle aged professionals.

  97. SAGAR RASTOGI says:

    DEAR NAMRA,

    AS FAR AS THE DEDUCTION OF REPAYMENT OF PRINCIPAL OF HOUSING LOAN YOU SHOULD BE THE OWNER OR DEEMED OWNER OF THAT PROPERTY ON WHICH LOAN IS TAKEN AND THE PROPERTY SHOULD BE ONE WHICH CAN BE TAXED UNDER THE HEAD OF INCOME FROM HOUSE PROPERTY.

    1. SAGAR RASTOGI says:

      DEAR NAMRA,

      AS FAR AS THE DEDUCTION OF REPAYMENT OF PRINCIPAL OF HOUSING LOAN YOU SHOULD BE THE OWNER OR DEEMED OWNER OF THAT PROPERTY ON WHICH LOAN IS TAKEN AND THE PROPERTY SHOULD BE ONE WHICH CAN BE TAXED UNDER THE HEAD OF INCOME FROM HOUSE PROPERTY

  98. Dr. Kamaljit Singh says:

    Sir,
    I wish to claim rebate of Rs 150,000/- on the interest paid against house loan. I am submitting the return online on form ITR1, but see no colum to claim this rebate (section 24(b). Will you please suggest, if I have to deduct it from the total salary and then fill it, or there is some other way of doing it.
    Kindly reply.
    Thanks,
    Kamaljit singh
    Professor

  99. Ahmed says:

    Dear Sir

    Under Deduction 80c can i claim refund of an amount Rs 22745=00 which is paid for admisson to college but the bill is collected as Managment fee for PCME (subjects) by college total amount collected for year 2010-2011 is Rs 25500
    i have paid TDS amount under which can i claim this refund

    Management fee PCME (subjects) Rs 22745-00
    College Fee Rs 1255-00
    Corpus Fund Rs 1000-00
    College Fee (language Hindi) Rs 500-00
    Total Rs 25500-00

    Please sir would you kindly Reply me urgently
    THANKING YOU

  100. maharaj krishen says:

    sir,
    i have to pay rs 70000=00 being tution fee to my daugter doing b,des
    from indian university,i want to know whether i will get rebate for
    the the amount mentioned above in full or there is some limit because
    one can save only 1 lac for financial year 2011-12
    thanks
    pl reply me soon

  101. Sourav Kumar says:

    Sir,

    I want to go for LIC’s Jeevan Anand policy for an amount of 5 lacs and for a period of 20 years.The sum of all the annual premium turns out to be more then the sum insured.What are the rules for getting the tax rebate as someone suggested that for this policy under revised taxation rules for 2011 we cannot get tax rebate as the premium amount is more then the sum insured and some other reason too.Kindly confirm and reply asap.

    Thanks
    Sourav

  102. Hemanshu says:

    Can A Father Take An Insurance Policy Due On Earning Son And Avail Tax Benefit.?
    Eg :

    Father Age = 68
    Son’s Age = 44

    Can Father Aged 68 Take A Policy On His Son Aged-44 And Claim The Tax Benefit U/S 80c For Life Insurance Deduction??

  103. Maheshwar says:

    Hi, I have invested in year 2005 for a plot for Rs. 5,00,000, since there was some issue with land allocation, they returned my principal amount of 5 Lac in year 2009 and last year interest for 4 to 5 years.

    My query is that is interest income taxable and need to be added to my main salary or I can avail any depriciation.

    Thanks

    1. SAGAR RASTOGI says:

      SUCH INTEREST EARNED IS TAXABLE UNDER THE HEAD OF INCOME FROM OTHER SOURCES AND NO DEPRICIATION IS AVAILABLE IF THE PLOT WAS TO BE USED FOR RESIDENTIAL PURPOSE. HOWEVER IF IT HAD BEEN PURCHASED FOR BUSINESS PURPOSE THEN DEFINITELY IT IS ELIGIBLE FOR DEPRICIATION U/S 32 AS A DEDUCTION OF PGBP INCOME.

  104. vipin goyal says:

    sir,

    i am purchase aviva polciy dtd 31.3.11 but ch. pass in my a/c dtd. 15.4.2011 pls till me i can taken tax benfit in F.Y. 2010-11

    1. deepak says:

      the date is date of deposit, nothing to do with when the cheque is encashed. but remember if the cheque is bounced april and you again deposit it, then the rebate will be available in the next year

  105. JANA S. says:

    OVER ALL LIMIT UNDER SEC 80-C IS RS.1,00,000/- AND ADDITIONAL LIMIT OF RS.20,000/- IS ALLOWED FOR INFRASTRUCTURE BONDS. Is there any chance to increase this limit ?

  106. Mangesh says:

    Hi,

    I paid an insurance premium on March 29, 2011 and I did not claim that premium for FY 10-11. Can I use that premium for 80C benefits this year, i.e., FY 11-12?

    Thanks,
    Mangesh

  107. sushma says:

    in case i withdraw money of icci prudential LIC before maturity then loss on that will be allowed as deduction from income from other sources?

  108. K H Mahajan says:

    Sir— Can I claim short term capital loss on shares dealing on delivery base, from my income of business and profession or from interest recd. from banks on FDs ?
    Thanks . K H Mahajan

    1. SAGAR RASTOGI says:

      NO YOU CAN`T DO SO. SHORT TERM CAPITAL LOSS CAN BE SET OFF ONLY WITH INCOME UNDER THE HEAD OF CAPITAL GAIN AND NOT WITH THE INCOME UNDER OTHER HEADS OF INCOME. HOWEVER LOSS UNDER OTHER HEADS OF INCOME CAN BE SET OFF WITH INCOME FROM CAPITAL GAIN.

  109. elima says:

    sir, i have been just recruited in a govt. job. my annual income is 2.23 lacs. what do you suggest me for tax saving.
    i already have lic policy of monthly premium 2300.

    1. nirav says:

      Hie Elima,

      Take NSC for Rs. 10,000/- from post office & make sure ur premium of Rs. 27600/- (yearly) – (Rs. 2300/-pm) has to be paid on time n before 31st march of every year.

  110. Sanjay says:

    Sir,
    I am an NRI who plans to settle in India. I have Insurance policies in UAE and wish to continue to pay the premiums for the same even after settling in India? How can I remit the payments towards premiums from india ?

  111. Mukesh says:

    Hi,

    Kindly advise the liability of Sevice Tax on Cargo handling service provided for agri product, which is providing to Singapore base Company.we have also received remittance in foreign currency.

    Thanx in advance

  112. sonali gawand says:

    Actually i donate every month 5000/- PM to handicarft school and my anuual income is 3.4 lakh means i donate yearly 60,000/- PA. My qus is how many amt i save to showing this donation.

  113. Sam says:

    Hi,

    I have paid Life Insurance premium from my credit card account.
    Can my wife claim income tax exemption for this premium under 80C?

    Please advise.

        1. SAGAR RASTOGI says:

          NO YOUR WIFE CAN NOT CLAIM THE DEDUCTION OF SUCH LIC PAID BY YOU. BUT YOU CAN CLAIM THE DEDUCTION OF LIC PREMIUM PAID FOR WIFE.MEANS YOU CAN CLAIM THE DEDUCTION OF LIC PREMIUM PAID ON YOUR LIFE AS WELL AS ON LIFE OF YOUR WIFE AND CHILDREN.

  114. Kumar Ashish says:

    Dear Sir,

    If a tax payer is getting heigher education. will the fees of education cover under section 80 c.

    Regards,
    Kumar Ashish

      1. SAGAR RASTOGI says:

        TUTION FEES PAID FOR CHILDREN( NOT FOR OTHERS) IS ELIGIBLE FOR DEDUCTION U/S 80C.MR. SRINIVASAN YOU CAN NOT CLAIM THE DEDUCTION ON THE SAID SITUATION.

  115. kailash says:

    Dear sir,
    Kindly advice me concern Tax benifit as I purchaged a house with NRI MONEY and the rent will give by person in IR-9000/- monthly and depositing in local bank. I had PPF A/C and yearly some what I deposite 30000/- wife and kids LIC 30000/-yearly 15000/- in post office 20000/ on health insurence, 25000/- daughter insurence 50000/- sbl life insurance etc.
    advice me for the Tax on money I recieved from rent can my all above saving can come under it.
    Regards
    Kailash

  116. Harsh says:

    Dear sir,

    I want to know that if I invest in this financial year (say in ELSS). But from next year after new tax law ELSS are not exempted. Will the investement done in this year be eligible for tax exemption.

    Regards,
    Harsh

      1. SAGAR RASTOGI says:

        TUTION FEES PAID FOR CHILDREN( NOT FOR OTHERS) IS ELIGIBLE FOR DEDUCTION U/S 80C.MR. RAJESH YOU CAN NOT CLAIM THE DEDUCTION ON THE SAID SITUATION.

  117. anup says:

    Sir ,
    I have taken a Bhima Bachat Policy , a single premium policy from LIC with the single premium of Rs. 1,00,155/- the Sum Assuerd policy value of Rs. 1,50,000/-. My Drawing & Disbursing Offcier says that only 20% of the sum assued Or the premium amount paid , which ever is least is only eligible for tax relief under section 80C. So he allowed only Rs. 30,000/- instead of Rs. 1,00,155/- . I feel it is not as per rules. so please clarify it. If he is right then I want to know wether I can get tax benifit of another 20% for next 4 years.

  118. anup says:

    dear sir

    i have taken lic policy in april 2010, total sum assured is Rs 150000 and for that i have paid one time single premium of Rs.100155. As per incomtax act, only 20% of total sum assured is refundable u/s 80c i want to know wether i can get tax benifit with same policy for next 4 year also ?.(20%x5)

  119. S K GARUD says:

    sir/Madam
    I have purchased the flat in Maharashtra,Iam presently working in Gujarat.
    Beside paying STamp duty ,Registration Fees I had paid VAT TAX also
    DOes THIS VAT TAX EXAMPTED FROM /FOR INCOME TAX> IF SO PLEASE LET KNOW
    THANKS & Regards
    S K GARUD

  120. Amit Tiwari says:

    Dear Sir,
    I have a Unit link single premium pension plan, having complimentary SA of Rs. 1000/-.
    Now i have opportunity to pay unlimited top up in it.
    If i do so, can i get 80’c’ benefit on top up?

    Kindly reply on my mail id.
    Regards
    Amit.

  121. narendra says:

    Dear Sir,

    We have two property

    Ist propert – it in joint name me and my wife who is govt employee. I have take staff loan from my company and paying eniter emi. My wife is not paying any amount towards loan repayment.

    2nd propert- taken in my wife name and her income is quite sufficient to meet emi requirment. But due to bank requirement, bank has made me co-applicant, however i am not co owner of 2nd house. Entire emi will be paid be paid by my wife throuth her salary account.

    Pls let me know the tax treatment. How can we both get the maximum benefit.

    Rgds

    Narendra

  122. Dinesh says:

    I am Purchasing a Flat in mumbai, the stamp duty paid for the same is allow for the deduction u/s 80C, my question is, if i pay the stamp duty in current year i.e on 27.03.2011 and register the agreement in next year i.e 05.04.2011, am i allowable for the deduction of stamp duty in current year and registration charges in next year.

    Your immediate reply will be highly appreciated.

    Regards
    Dinesh

  123. Sunil says:

    I am not able to understand how or which amount a senior citizen can claim deduction u/s 80c in the senior citizen saving scheme ( post office ) ?

  124. amit singh says:

    sir my annual income is Rs.422200.I WANT TO KNOW TAX REBATE U/S 80C. HOW MUCH REBATE WILL GOT.IF I HAVE 4 LIC POLICY.ME,MY HUSBAND AND MY 2 CHILD

    1. narendra says:

      i think ,you need not required to have policy for all members of ur family. the policy the a single key person will be enough.

      Do like this:
      Claim under section 80c
      a)pay insurance 30000
      b)Pay tuition fee of your child=10000
      c)Purchase a house and claim Repayment of house Loan=50000.(To-let the house property to claim interest portion,if it is more than Rs 150000)

      Remember from year 2010/4/1…The limit U/s 80 has been increased to Rs 120000.

      Tax evasion is crime but tax planning is inevitable.

    1. srinivasan says:

      OVER ALL LIMIT UNDER SEC 80-C IS RS.1,00,000/- AND ADDITIONAL LIMIT OF RS.20,000/- IS ALLOWED FOR INFRASTRUCTURE BONDS

  125. govind says:

    is there any exemption on following

    1 RELIANCE DIVERSIFIED POSER SECTOR FUND-RETAIL GROWTH PLAN-GROWTH OPTION
    2 RELIANCE REGULAR SAVING FUND – EQUITY PLAN – DIVIDEND PLAN

    KINDLY SUGGEST ME.

    1. SAGAR RASTOGI says:

      IF THESE ARE “ELSS” THEN THEY ARE ELIGIBLE FOR DEDUCTION U/S 80C.
      BUT FOR YOUR INFORMATION GAIN ON SALE OF THESE FUNDS IS NOT TAXABLE.

  126. r k gupra says:

    my daughter is studying in college. she is assessed to income tax and having the income from bank on deposits.Now i want to know if she pays her tution fee from her own account then whether she will be ekigible for 80 C

  127. r k gupra says:

    dear sir

    my daughter is stuyding in college and she is tax payee and assesee to income tax.

    she has income from bank interest now i want to know if she payes her tution fee from her own account the whether she will be eligible for deduction u/s 80-c

  128. Santosh says:

    Sir,
    I am presently working for government of India since Sep 2010. During my PG(2007-2009) I took Education Loan of 1 lack and now i am repaying it through EMI of Rs 2400 from Dec 2010. So can I avail any Tax exemption in this regard …… please convey it to my E mail ID

    1. KANNAN says:

      no…..for the capital you are repaying ll not get tax eccemption….only for the intrest you are paying can get tax excemption…

  129. Ritesh Samuel says:

    If two person take the housing loan on combined basis so can both the person get the deduction under 80c and under section 24 on pro rate based.

    1. Professional says:

      Dear Sir,

      You have mentioned Rs.170000 as your income. However, you have not mentioned from which head the income has been earned.

      Hence, we assume that it is the income taxable (after all exemption eligible u/s10)on your hand before the deductions available under chapter VIA. Further we assume that the income mentioned by you is earned for the year 2010-11.

      Having assumed as mentioned on the para 2, You should invest at least Rs.10000/- in any of the eligible investments (NSC is one of the eligible investments) to take dedcution u/s 80C.

  130. Prash says:

    Hi,

    I’m planning a start-up of my own. That will need an investment of something like 1L for me individually. Will that be counted in as an investment?

    Cheers,
    Prash

  131. SHEELU G says:

    My CA claimed Rs.48,000/- as a rent for the shop for the year ended 31-03-2010.Actually Stamp Duty(Rs.84,000/-) and Registration(Rs.14,000/-) are yet to be paid.Thereafter I will take the possession.then I paid Rs. 5513/- as INCOME TAX as calculted by him.If I pay Stamp Duty & Registration Charges and avail tuition fee (Rs.100,000/-),I need not pay Income Tax this year.Am I correct.Secondly, can I NIL rent for the shop as income.

  132. Ghazala says:

    I am a single parent (female) of twins age 5 yrs. Can you please advise me how I can save tax except tuition fees. I need the best way where I can earn maximum profit with less risk. Is it possible to save tax which has been already deducted this year from my salary? Please answer ASAP.

    1. Professional says:

      Dear Madam,

      There are many kinds of investments which are eligible to be claimed u/s 80C. These include PPF, NSC, FD (for five years), LIC premuim, Housing loan principle repayment, Certain Mutual Funds…….

      Investing in PPF, NSC and FDs will get you assured, however moderate, returns and further you no need to fear for the investment is being eroded. There are lock-in period for these investments.

      Investment in Mutual fund (not all the mutual funds are eligible to be invested to claim dedcution u/s 80C. Further is worth to note that the mutual funds eligible to be invested and claimed u/s 80C used to have a lock-in period of three years)may get you a higher return than the investments such as PPF, NSC, FD etc based on which scheme and which MF you have invested. The Mutual fund scheme which yield high returns are normally invested in the equity funds and thus, needless to say, the amounts invested are exposed for being eroded.

      We strongly recommend to take advise from your CA before you invest your hard earned money.

    2. Professional says:

      You have not mentioned if you are employed or carrying out your business/profession. We assume that you are employed and give the below mentioned solutions

      If the total tax payable by you for your salary income, after considering the investments you made (now) to claim dedcution u/s 80C, is LESS than the amount already deducted (as TDS) by your employer, then the excess deducted over the total tax payable can be calimed as refund from the IT Dept by filing your tax return.

      If the total tax payable by you for your salary income, after considering the investments you made to claim dedcution u/s 80C, is MORE than the amount already deducted (as TDS) by your employer, then the balance tax payable (over the TDS already deducted) will be deducted by your employer from March’11’s salary.

  133. raj says:

    Hello,

    My yearly income is 6lacs. I invest in PPF, Life Insurance upto 1lack and 20thousand in infra bond and top of that have mediclame also.

    My query is if i go for home loan and if my EMI is Rs18 thousand how much will be i able to save more on income tax. i.e already i am saving tax on 1.20 lacs by investment in ppf lic ect. will i get more tax benifit if i go for housing loan.

  134. santosh ghag says:

    I have purchased a house which is under construction and hoping to get possession in coming year 2011, I have paid stamp duty on nov 2010, so can I claim this amount under 80C this year or the year when I get possession. Please suggest.

  135. Surunesh mitra says:

    Sir/Madam,
    I would like to know whether the post office MIS is exempted from the income tax under 80C.
    secondly, my wife has been gifted a plot of 1200 Sq Ft, the stamp duty charges can be included from exemption from income tax.

  136. RISHU GARG says:

    Thanks for this article.

    I would like to know whether deduction in respect of amount deposited in Recurring Deposit Account of Post Office whose term is of 5years will be allowed U/s 80C or not.

    Please clarify.

  137. M.V.Rao says:

    Sir ,
    I have taken a Bhima Bachat Policy , a single premium policy from LIC with the single premium of Rs. 84,000/- the Sum Assuerd policy value of Rs. 1,10,000/-. My Drawing & Disbursing Offcier says that only 20% of the sum assued Or the premium amount paid , which ever is least is only eligible for tax relief under section 80C. So he allowed only Rs. 22,000/- instead of Rs. 84,000/- . I feel it is not as per rules. so please clarify it.

  138. kavita says:

    I booked a flat & paid stamp duty & registration charges & flat is under construction,can i take a deductionof stamp duty charges under section 80 C

    Please reply me.

  139. kavita says:

    Hi.
    I am claiming for exemption under section 80C – “Stamp Duty and Registration Charges for a home”My company is not excepting the same. They sya it should be claimed after possession of the house. Kindly guide me.

    Thanks,

    Kavita

    1. R Mahalingam says:

      Hi

      The question of claiming benefit AFTER possession of the property applies only to interest. The principal paid even during construction period (including land registration charges) can be claimed in the year of payment under Sec 80C.

      The relevant sub-section under Sec 80C reads as follows (reconstructed for ease of understanding):-

      In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the WHOLE OF THE AMOUNT PAID OR DEPOSITED IN THE PREVIOUS YEAR, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees.

      (xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property”

      The words “the income from which is chargeable to tax” is misinterpreted as a pre-requisite for deduction under Sec 80C. It should be read with the following words … “under the head ‘Income from house property” so that the actual import is understood. What it implies is that the payment, if is made towards a loan taken for any non-residential property, then it is not eligible under Sec 80C.

      Hope it clears your doubt.

  140. sunil kumra says:

    i am a saliried person i am suffering from ulcerative colitis i claim the medical bill from my institution as per income tax rule excess of rs 15000/- is tax able i.e will add in my income as income from other soursces
    can i exempted under sec 80dd or 80ddb i mean to say my problem ulcerative colitis is eligible for Rs 40000/-

  141. Sanjeev kumar says:

    Sir,
    I have taken a loan from HDFC in joint names(me and mywife) and i was pay the principal amount to the bank. Bank was taken the payment through ECS on my account only.
    So please tell me about
    1.i was good for me because i was pay principal amount to the bank or i pay only interest to bank.
    2 it was possible my wife was taken the tax benefit on behalf of me.

  142. jai says:

    Hi,

    Repayment of housing loan but said housing property under construction than can i get 80 C benefit on repayment.

    also can i get benefit U/s 24 for Interest on hosiung loan which property is under construction.

    thanks,

    jai

  143. MURLI MANOHAR says:

    hi sir,pls clear me for 80c deduction for childern education limit and ppf limit and home loan principal amt.
    and
    80D medical insurance benifit for self and mother/father limit.
    please repply me

    thanks sir

  144. Sachin says:

    I booked a flat & paid stamp duty & registration charges & flat is under construction,can i take a deductionof stamp duty charges under section 80 C

    Please reply me.

  145. murali says:

    Hi, I have savings more than one lakh to get exemption u/s 88. One of my friend told me that i can invest 20,000 over above one lakh under this section. Please inform me how i can purchase infrastructure bonds. What is the minimum amount that I have to spend on this item.

  146. Rakesh Sharma says:

    Dear Prabhakar,
    As per my view, Interest paid on preconstruction or under construction prop.; or interest paid till the property is not occupied the interest paid is capatilised.
    Thus only deduction u/s 80c is available.

  147. D Durairaj says:

    Sir

    My personal income tax assessed from March to Feb. I paid my insurance premium during March. Can I claim the premium deduction in the Month & year of payment

    Thanks

    D Durairaj

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