How To Make The Most Of Section 80C Deductions To Save Income Tax

Section 80C of the Income Tax Act is one of the most popular and simple ways of managing your taxes. If you have not used your tax benefits well so far, learning about income tax benefits available under Section 80C laws can be an important first step..Many income tax experts emphasise on the importance of income tax benefits available under Section 80C — often considered one of the most popular ways to save money among salaried individuals. .Here's a guide to various tax benefits you can claim to manage your tax outgo using Section 80C of the Income Tax Act:.How much income tax can one save under Section 80C?.Currently, Section 80C provides for deduction of up to Rs 1.5 lakh in taxable personal income in a financial year under certain conditions..You can easily reduce up to Rs 1.5 lakh from your total taxable income making use of Section 80C norms. The Income Tax Department returns any excess taxes paid by you based on your investments in life insurance, provident fund (EPF and PPF), National Pension System (NPS), National Savings Certificate (NSC) and tax-saving fixed deposits..Here are some investments which are eligible for claiming income tax benefits under Section 80C: . Premium paid to subscribe to or renew a life insurance policy Unit-Linked Insurance Plans (ULIPs) Tax-saving mutual funds or Equity-Linked Saving Scheme (three years of lock-in period) Provident fund (Employees' Provident Fund/Public Provident Fund) Payment of stamp duty on purchase of house property Payment of principal amount of a home loan National Savings Certificate (NSC) Tax-saving fixed deposit (five-year maturity) Small savings schemes such as Senior Citizen Savings Scheme and Sukanya Samriddhi Payment of tuition fees (paid to a university, college or school) for up to two children .A salaried individual can use a combination of these options to claim an overall deduction up to Rs 1.5 lakh in taxable income.

How To Make The Most Of Section 80C Deductions To Save Income Tax

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