Deduction under section 80C, 80CCC & 80CCD for AY 2024-21 or For financial year 2019-20 (Including Budget amendments). Deductions on Section 80C, 80CCC & 80CCD for FY 2019-20. In this article you may find complete details for how You can avail the benefit of deduction u/s 80C by investing in the Govt schemes. Now check more details for Deduction under section 80c for AY 2024-21 from below….
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Deductions on Section 80C, 80CCC, 80CCD & 80D
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.
You can claim the deduction under section 80C as per follows:
An Assessee can claim a deduction of Rs 1.5 lakh your total income under section 80C. In simple terms, you can reduce up to Rs 1,50,000 from your total taxable income, and it is available for individuals and HUFs.
- A.Y. 2024-21: Up to 1,50,000/-
- A.Y. 2019-20: Up to 1,50,000/-
- A.Y. 2018-19: Up to 1,50,000/-
- A.Y. 2017-18: Up to 1,50,000/-
- A.Y. 2016-17: Up to 1,50,000/-
- A.Y. 2015-16: Up to 1,50,000/-
- A.Y. 2014-15: Up to 1,00,000/-
Aggregate amount of deduction u/s 80C, 80CCC, 80CCD and new section 80CCE is restricted to Rs.1,50,000.
- Section 80CCC – Insurance Premium (Deduction for Premium Paid for Annuity Plan of LIC or Other Insurer)
- Section 80CCD – Pension Contribution (Deduction for Contribution to Pension Account)
- Deduction Section 80 TTA – Interest on Savings Account (Deduction from Gross Total Income for Interest on Savings Bank Account)
- Section 80GG – House Rent Paid (Deduction for House Rent Paid Where HRA is not Received)
Payment Made…
- Life insurance premium for policy :
- in case of individual, on life of assessee, assessee’s spouse and any child of assessee
- in case of HUF, on life of any member of the HUF
- Sum paid under a contract for a deferred annuity :
- in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity)
- in case of HUF, on life of any member of the HUF
- Sum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary]
- Contributions by an individual made under Employees’ Provident Fund Scheme
- Contribution to Public Provident Fund Account in the name of:
- in case of individual, such individual or his spouse or any child of such individual
- in case of HUF, any member of HUF
- Contribution by an employee to a recognised provident fund
- Contribution by an employee to an approved superannuation fund
- Subscription to any notified security or notified deposit scheme of the Central Government. For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21.01.2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction.
- Amount can be deposited by an individual or in the name of girl child of an individual or in the name of the girl child for whom such an individual is the legal guardian.
- Subscription to notified savings certificates [National Savings Certificates (VIII Issue)]
- Contribution for participation in unit-linked Insurance Plan of UTI :
- in case of an individual, in the name of the individual, his spouse or any child of such individual
- in case of a HUF, in the name of any member thereof
- Contribution to notified unit-linked insurance plan of LIC Mutual Fund [Dhanaraksha 1989]
- in the case of an individual, in the name of the individual, his spouse or any child of such individual
- in the case of a HUF, in the name of any member thereof
- Subscription to notified deposit scheme or notified pension fund set up by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]
- Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children
- Certain payments for purchase/construction of residential house property
- Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both
- Sum paid towards notified annuity plan of LIC (New Jeevan Dhara/New Jeevan Dhara-I/New Jeevan Akshay/New Jeevan Akshay-I/New Jeevan Akshay-II/Jeewan Akshay-III plan of LIC) or other insurer
- Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)
- Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)
- Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions
- Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to above.
- Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified.
- Subscription to notified bonds issued by the NABARD.
- Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)
- 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)
Deduction u/s 80C Schemes
You can avail the benefit of deduction u/s 80C by investing in the following schemes.
- Payment for Life Insurance Premium.
- Payment for Deferred Annuity Plan.
- Deferred Annuity Payable by Government.
- Contribution to Public Provident Fund.
- Contribution to Provident Fund set up by Central Government.
- Subscription to any security or deposit notified by Government.
- Subscription to Saving Certificates.
- Contribution to Recognised Provident Fund.
- Contribution to recognized superannuation fund
- Subscription for Unit Linked Insurance Plan 1971.
- Contribution for Unit Linked Insurance Plan of LIC Mutual Fund.
- Payment for annuity plan of LIC or any other insurer.
- Subscription to units of notified mutual fund.
- Contribution to notified pension fund of mutual fund.
- Pension fund set up National Housing Bank.
- Subscription to a deposit scheme of public sector company engaged in providing long term finance for housing.
- Tuition fees of two children in India.
- Payment of instalment for self-financing of a residential property for repayment of loan.
- Subscription to equity shares or debentures as approved for infrastructure.
- Subscription to any units of mutual fund as approved by the Central Board of Direct Taxes
- 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 0 C within the overall limit of Rs. 1 lakh. This deduction to some Rules.
- Notified bonds of NABARD.
- Deposit in an account under the Senior Citizens Savings Scheme Rules, 2004.
- Five-years time deposit in an account under the Post Officer Time Deposit Rules, 1981.
Popular Tax Saving Schemes Under Section 80C
Life Insurance Premium: Payment of premium on life insurance policy and health insurance policy not only gives insurance cover to a taxpayer but also offers certain tax benefits. In this part you can gain knowledge about deductions available to a taxpayer on account of payment of life insurance premium, payment of health insurance premium and expenditure on medical treatment.
Deduction in respect of Life Insurance Premium, PPF, NSC, etc. [Section 80C]
Section 80C provides deduction in respect of various items like life insurance premium, investment in Public Provident Fund, investment in NSC, repayment of principal component of housing loan, investment in Post Office Time Deposit Scheme, Senior Citizens Saving Scheme, etc. We will focus on the provisions of section 80C relating to deduction on account of payment of life insurance premium.
Apart from several other items provided under section 80C, a taxpayer, being an individual or a Hindu Undivided Family (HUF), can claim deduction under section 80C in respect of premium on life insurance policy paid by him/it during the year.
In case of an individual, deduction is available in respect of policy taken in the name of taxpayer or his/her spouse or his/her children. In case of a HUF, deduction is available in respect of policy taken in the name of any of the members of the HUF.
Please Note – No deduction is available in respect of premium paid in respect of policy taken in the name of any person, other than given above.
Deduction Allowed – Overall deduction u/s 80C (along with deduction u/s 80CCC & 80CCD) allowed is up to Rs. 1,50,000.
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