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Things to know about section 80C of the Income Tax Act

Tax-saving guide for FY 2018-19
What is section 80C?
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What is section 80C?
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The most widely used option to save income tax is section 80C of the Income Tax Act. Apart from investments in specified avenues, certain specified expenditures also qualify as deductions from gross total income under section 80C. Here is all you need to know about section 80C.

Who can claim tax break under this section and how?
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Who can claim tax break under this section and how?
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An individual or an HUF can reduce up to Rs 1.5 lakh from their total taxable income through Section 80C for the financial year 2018-19.

What are the specified investments?
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What are the specified investments?
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Eligible investments include contributions to EPF, VPF, PPF, ELSS mutual funds, Sukanya Samriddhi Account, tax saving FDs and post office, NPS, NSC, SCSS, NABARD bonds, and a few other options. Each of the eligible investment has its own investment limit, rate of return, liquidity and tax treatment on its returns.

What are the eligible payments?
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What are the eligible payments?
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Eligible payments include life insurance premium, principal repayment of home loan and children's tuition.

How can you claim this deduction?
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How can you claim this deduction?
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In order to claim the deduction for this particular financial year, one needs to invest or spend the deductible amount in this financial year itself.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)

Tax-saving guide for FY 2018-19
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