Expenses spent = Deduction under Income Tax

Section 80C Under Income Tax Law

Section 80C is one of the most popular and favourite sections amongst the taxpayers as it allows to reduce taxable income by making tax saving investments or incurring eligible expenses. It allows a maximum deduction of Rs 1.5 lakh every year from the taxpayers total income.

Section 80C of the Income Tax Act of India allows for certain investments and expenses to be deducted from an individual's taxable income, up to a specified limit. Some examples of eligible investments and expenses under Section 80C include:

• Contributions to certain pension schemes and provident funds.

• Premiums paid on life insurance policies.

• Principal repayment on home loans.

• Tuition fees for children's education.

• Equity-linked savings schemes (ELSS) and National Savings Certificate (NSC)

• Investment in Sukanya Samriddhi Account

• Repayment of certain loans

Note:

• The benefit of this deduction can be availed by Individuals and HUFs. Companies, partnership firms, LLPs cannot avail the benefit of this deduction.

• Section 80C includes subsections , 80CCC, 80CCD (1) , 80CCD (1b) and 80CCD (2).

• It is important to note that overall limit including the subsections for claiming deduction is Rs 1.5 lakh except an additional deduction of Rs 50,000 allowed u/s 80CCD(1b)