Deduction under section 80C- 80CCC- 80CCD and 80D and 80CCD (1) - 80CCD (2) and 80CCD (1B) for A.Y 2022-23

Deduction under 80C- 80CCC- 80CCD and 80D and 80CCD (1) - 80CCD (2) and 80CCD (1B) for A.Y 2021-22 (including budget amendment). Exemption in Section C0C, CC0 CCC and CC0 CCD for the financial year 2020-21. In this article, you can get a complete description of how you can avail of discounts under 80C by investing in government schemes. Now see more details for cutting under section 80 C for A.Y 2022-23 from below- 

Section 80C Life Insurance Premium

Funding

Subscription to specific equity shares

Salary

National Savings Certificates,

Principal of Housing Anne

The combined discount limit for various other items is Rs. 1,50,000

Annual plan of LIC or another insurer for 80CCC pension scheme

80CCD (1) Central Government Pension Scheme

Cutting under Sections 80C, 80CCC, 80CCD (1)

80CCD (1B)

Except for deductions claimed under 80CCD (1), exemptions in respect of payments made under the Central Government Pension Scheme. 50,000

80CCD (2)

Reduction for the contribution made by an employer to the central government's pension scheme

If the employer has a PSU, state government or other 10% salary limit

If the employer limits 14% of the employer's salary

Discounts on Sections 80C, 80CCC, 80CCD and 80D

There are 80HH, 80RRB, 80U and many more discounts from 80C to 80U under Chapter VI-A. But this article is only for cuts that come under 80C.

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The total discount amount between 80C, 80CCC, 80CCD and new section 80CCE is limited to Rs.1,50,000.

1 Section 80CCC - Insurance premium (discount for a premium paid for LIC or other insurer's annual plan)

2 Section 80CCD - Pension Contribution (deduction for contributions to the pension account)

3 Deduction Section 80 TTA - Interest on Savings Account (deduction from total income for interest on Savings Bank Account)

4 Section 80GG - House rent paid (Discount for house rent where HRA is not available)

Payment.

Life insurance premium for 5 policies:

In the case of an individual, in the life of the assessor, the wife of the assessor and any child of the assessor

7 In the case of HUF, on the life of any member of HUF

8 Payments made under a suspended annual contract:

In the case of a person, in the life of the person, the person's spouse and any child of the person (however, the contract should not have the option of paying cash instead of annuity).

Contribute to the Public Provident Fund account in the name of 10

 

11 In the case of a person, such as a person or his wife or any child of such a person

12 in case of HUF, any member of HUF

13 Employee contributions to a recognized provident fund

14 Contributions to retirement funds approved by an employee

15 Subscription to any Notified Security or Notified Deposit Scheme of the Central Government. For this purpose, Sukanya Samridhi Account Scheme has been notified through Notification No. 9/2015 dated 21.01.2015. Any money deposited by an individual in the Sukanya Samridhi account during the year will be eligible for a discount.

Subscription to Notified Savings Certificate [National Savings Certificate (VIII Issue)]

16 Contributions to participation in UTI's unit-linked insurance plan:

17 tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution in India for the full-time education of any 2 of his / her children

18 Payment for purchase/construction of a residential property (H.B.L. Principle)

19 Contribution of an individual to the pension fund as determined by any mutual fund as specified by Section 10 (23D) or UTI (UTI Retirement Benefit Pension Fund)

20 Notification Bond Subscription issued by NABARD.

21 Deposit to an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)

22 5 year term deposit in an account under Post Office Time Deposit Rules, 1981 (subject to certain conditions)

Discounts within the 80C scheme

You can avail discounts under 80C by investing in the following schemes.

23 Payment for life insurance premiums.

24 Payment for deferred annual plans.

25 Delayed annuities payable by the Government.

26 Contributions to the Public Provident Fund.

27 Contributions to the Provident Fund set up by the Central Government.

28 Subscription to any security or deposit advertised by the government.

29 Certificate Save Subscription.

Contributed to 30 recognized provident funds.

31 Contributions to recognized retirement funds

Subscription for 32 Unit Linked Insurance Plan 1971.

33 Units of LIC Mutual Fund Contribution for Linked Insurance Plan.

34 Payment for LIC or any other insurer's annual plan.

Subscriptions to 35 advertised mutual fund units.

Contribution of 36 Mutual Funds to Notified Pension Funds.

37 The Pension Fund has been set up by the National Housing Bank.

38 Subscription to the deposit scheme of a public sector company engaged in long-term payment for housing.

39 Tuition fees for two children in India.

40 of Payment of instalments for self-financing of a residential property for payment.

41 Subscription to equity shares or debentures as authorized for infrastructure.

42 Subscription to any unit of mutual fund approved by Central Board of Direct Taxes

43. A term deposit in a scheduled bank for a specified period of fewer than five years will also be eligible for tax exemption under section 80C as per the Finance Act, 2006-07 for FY. Lakh lakh. This cut in some rules.

44 Notified Bonds of NABARD.

45 credited to an account under the Senior Citizen Savings Scheme Rules, 2004.

46 Five-year time deposit in an account under the Post Officer Time Deposit Rules, 1981.

 

Allowed discounts - Overall discounts under 80C (including discounts of 80CCC and 80CCD) up to Rs. 1,50,000. But additional discounts can be made on U / s 80CCD (1), 80CCD (2) and 80 CCD (1B) which do not fall within the 80C limit. 1.5 lakh.

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Deduction under section 80C for A.Y.2018-19. We know that you are very much interested to know the deduction from gross total income to calculate net income tax. As we will discuss only here deduction under section 80C in detail for the Financial Year 2017-18 as per the Finance Budget 2017-18

Income Tax Slab Rate for the F.Y.2017-18 as given below:-

There are lots of deductions comes under Chapter VI-A from section 80C to 80U like 80HH, 80RRB, 80U and more. But this article is exclusively for the deduction comes under section 80C.

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You can claim the deduction under section 80C as per follows: 

Aggregate amount of deduction u/s 80C, 80CCC, 80CCD and new section 80CCE  is restricted to Rs.1,50,000.& Additional deduction Rs.50,000/- U/s 80CCD(1B)

You can avail the benefit of deduction u/s 80C by investing in the following schemes. 

1.                       Payment for Life Insurance Premium.

2.                       Payment for Deferred Annuity Plan.

3.                       Deferred Annuity Payable by Government.

4.                       Contribution to Public Provident Fund.

5.                       Contribution to Provident Fund set up by Central Government.

6.                       Contribution to Recognised Provident Fund.

7.                       Contribution to recognized superannuation fund.

8.                       Subscription to any security or deposit notified by Government.

9.                       Subscription to Saving Certificates.

10.                   Subscription for Unit Linked Insurance Plan 1971.

11.                   Contribution for Unit Linked Insurance Plan of LIC Mutual Fund.

12.                   Payment for annuity plan of LIC or any other insurer.

13.                   Subscription to units of notified mutual fund.

14.                   Contribution to notified pension fund of mutual fund.

15.                   Pension fund set up National Housing Bank.

16.                   Subscription to a deposit scheme of Public Sector Company engaged in providing long term finance for housing.

17.                   Tuition fees of two children in India.

18.                   Payment of installment for self-financing of a residential property for repayment of the loan.

19.                   Subscription to equity shares or debentures as approved for infrastructure.

20.                   Subscription to any units of the mutual fund as approved by the Central Board of Direct Taxes.

21.                   As per the Finance Act, 2006 for F.Y. 2006-07, a term deposit for a fixed period of not less than five years with a scheduled bank would also qualify for tax deduction under Section 80 C within the overall limit of Rs.1.5 lakh. This deduction to some Rules.

22.                   Notified bonds of NABARD.

23.                   Deposit in an account under the Senior Citizens Savings Scheme Rules, 2004.

24.                   Five-years time deposit in an account under the Post Officer Time Deposit Rules, 1981.

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Popular Tax Saving Schemes Under Section 80C

Life Insurance Premium: You can get the deduction by depositing or paying life insurance premium in the previous year. You must note here that premium paid on behalf of wife/husband/child or any member of the family where assesses in an HUF. Child includes adult children also, Thus, a deduction is available in respect of premium paid on a policy on the life of a married daughter.

Provident Fund & Public Provident Fund: You can claim deduction under section 80C for the amount deposit in provident fund also. The amount deposit in the name of wife/husband/child or any member of the family where you are as an HUF is also eligible for deduction u/s 80C. The annual contribution is Rs.1,50,000 (A.Y. 2018-19) (A.Y.2017-18, A.Y.2016-17 & A.Y.2015-16).

You can deposit Rs. 1,50,000 (A.Y.2018-19 & A.Y.2017-18) in PPF A/c even if you have paid the amount in LIC,NSC, ULIP etc. However, the deduction u/s 80C is available on the total contribution of PPF, LIC, ULIP, etc. up to a maximum of Rs.1,50,000.

Interest on PPF is not treated as reinvestment for purpose of section u/s 80C is available even if the contribution is made in the PPF account of minor/major children or spouse.

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National Saving Certificates (NSC): You can also get deduction under section 80C for the amount deposit in national saving certification along with PPF/LIC/ULIP up to a maximum of Rs.1,50,000 accrued during the year.  There is no TDS deduction for repayment of NSC. Interested accrued during the year (except for the last year) shall be deemed to be reinvested and shall also qualify for deduction u/s 80C.

Bank Term Deposit Schemes: Amount invested in bank term deposits along with PPF/LIC/NSC/ULIP etc. up to a maximum of Rs.1,50,000  is also eligible for deduction under section 80C. The maturity period for bank term deposit schemes is 5 years.

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Post Office Time Deposit Schemes: You can also opt for post office time deposit to get deduction under section 80C up to Rs.1,50,000. You must note that the deduction is available only to the first holder.

Mutual Fund Schemes: Some of the schemes of mutual funds are eligible for deduction u/s 80C along with other investments give above. The income from mutual funds is also fully exempted u/s 10 (35).

Senior Citizens Saving Scheme, 2004: You can also get the benefit of Senior Citizens Saving Scheme to get deduction u/s 80C of Rs.1,50,000. No TDS deduction is required if you provide form 15H/15G (as the case may be).

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NABARAD Rural Bonds: The deduction is also available under section 80C for a subscription to notified bonds issued by National Bank for Agriculture and Rural Development.

ULIP: The deduction is also eligible for the amount deposit in the name of himself, his/her wife/husband or his child, and an HUF in the name of its members to any Unit Linked Insurance Plan of UTI.

Tuition Fees: You can claim the deduction of paying the tuition fee of your two children. Here, you should note that tuition fees eligible paid to any university, college, school or other educational institution situated in India. However, any development fees or donation or payment of similar nature shall not be eligible for deduction.

New Pension Fund U/s 80CCD(1B): - The Additional can be avail Rs.50,000/- for New Pension Fund, which is not bound U/s 80C Max Rs. 1.5 lakh.

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