Deduction U/s 80C of Income Tax Act, 1961

Deduction U/s 80C

In this article we discuss about the concept of deduction u/s 80C which is available to Individual or HUF. Maximum deduction can be availed of upto Rs. 1,50,000/- (Subject to overall limit of Rs. 1,50,000/- under section 80C, 80CCC and 80CCD).

Section 80C of Income Tax Act, 1961:-

    • This deduction available to Individual or HUF (Hindu Undivided Family) only.
    • Deduction is available only in case of paid or deposit basis.
    • Maximum deduction can be availed of upto Rs. 1,50,000/- (Subject to overall limit of Rs. 1,50,000/- under section 80C, 80CCC and 80CCD)
  1. Life Insurance Premium:-
    • In case of an individual, the individual, the wife or husband and any child of such individual and
    • In case HUF, any member thereof.
  2. Sum paid under contract for a deferred annuity (however, contract should not contain an option to receive cash payment in lieu of annuity):-
    • In case of an individual, the individual, the wife or husband and any child of such individual and
    • In case HUF, any member thereof.
  3. Any sum deducted from salary by or on behalf of the Government of an individual for the purpose of securing to him a deferred annuity or making provision for his spouse or children (Subject to maximum 1/5th of the salary).
  4. Contribution made by an individual under Employee Provident Fund Scheme.
  5. Contribution made to Public Provident Fund (PPF):-
      • In case of an individual, the individual, the wife or husband and any child of such individual and
      • In case HUF, any member thereof.
  6. Contribution made by an employee to a recognised provident fund.
  7. Contribution made by an employee to a approved superannuation fund.
  8. Sum paid for subscription in notified security or notified deposit of the Central Government. CG notify Sukanya Samriddhi Account Scheme has been notified. Any sum paid under this scheme by individual in the name of her girl child or any other girl child for whom such individual is legal guardian.
  9. Any subscription in notified saving certificate. Central Government notifies NSC (National Saving Certificate).
  10. Contribution for participation in the Unit-linked Insurance Plan of UTI:-
    • In case of an individual, the individual, the wife or husband and any child of such individual and
    • In case HUF, any member thereof.
  11.  Contribution for participation in the Unit-linked Insurance Plan of LIC Mutual Fund:-
    • In case of an individual, the individual, the wife or husband and any child of such individual and
    • In case HUF, any member thereof.
  12. Any sum paid for annuity plan of LIC or other insurer.
  13. Contribution to any units of Mutual Fund referred to section 10(23D)
  14. Tuition Fees whether at the time of admission or thereafter:-
    • To any university, college, school or other educational institution situated in India
    • In case of an individual, the individual, the wife or husband and any child of such individual and
    • In case HUF, any member thereof.
    • This deduction not include in case of payment towards any development fees or donation or payment of similar nature.
  15. Contribution by an individual to any pension fund setup by Mutual Fund referred to in section 10(23D)
  16. Subscription to notified Deposit scheme or notified pension fund set up by National Housing Bank.
  17. Certain payment like principal repayment of loan, stamp duty, registration fees which is taken for the purpose of construction or purchase of residential house.
  18. Subscription to equity shares or debenture forming part of any “eligible issue capital” of any public financial institution.
  19. Subscription to any units of any approved Mutual Fund referred to in clause section 10(23D) subject to condition that amount of subscription to such units is subscribe in only “eligible issue of capital”.
  20. Term Deposit:-
    • For a fixed period of not less than 5 years with a scheduled bank.
  21. Subscription to such bonds issued by NABARD.
  22. Deposit in account under the Senior Citizens Saving Scheme Rules, 2004.
  23. Fixed deposit for a fixed period of not less than 5 years with an account under the Post Office Time Deposit Rules, 1981.

 

 

 

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