Deduction 80C AY 2021-22
According to the Income Tax Act 1961 Section 80C is most popular section claim 80% by the assessee.
Section 80C 80% of the claim of the assessee.
Deduction is allowed only from the total income computed as per the provisions of the Act, following assessment:
- a person; or
- A Hindu undivided family.
The above assessments will be worth a deduction from the amount paid or deposited in the previous year, which is more than the total amount, which does not exceed Rs. 1,50,000:
Me. Payment made by a person to enforce an insurance or to keep an insurance amount over his life:
- A person’s self.
- Her / his husband, and
- Such a person has no child
Children cannot be married / unmarried, dependent / dependent on person.
In case of Hindu undivided family, the premium should be paid on the life of any member of the family.
Expression Insurance will include:
- A net settlement assurance policy; And
- One children suspended the Endowment Assurance Policy.
The premium paid on a life insurance policy is more than a few percent of the capital amount which is not eligible for deduction (Section 80C (3)
|Premium paid on insurance policy other than contract for deferred annuity||Amount eligible for deduction paid|
|a. For policy issued on or before 31.03.2012
B. For policy issued on or after 1.4.2012
C. A policy issued on or after 1.04.2013 for insurance on the life of a person, which is-
Me. Disabled person or seriously handicapped person, as referred to in section 80U, or
ii. Suffering from illness of the disease specified in the rules made under section 80DDB
|20% capital sum assured
10% capital sum assured
15% capital sum assured
|In computing any such actual capital amount, no account shall be taken—
Me. Agree to refund the value of any premium, or
ii. Any benefit or otherwise above and actually assured by way of bonus, which can be obtained or received by any person under the policy (Explanation 2 to Section 80C (3)
(ii) Any payment by a person on the life of any person on a contract for a non- payable deferred annuity (except as mentioned in clause X below) : (a) a person himself, (b) / her husband, And (c) the child of any such person;
(iii) Deduction from salary payable to a person in accordance with the terms of services for the purpose of securing his spouse or making provision for his spouse . The amount deducted should not exceed 1 / 5th of the salary ;
(iv) Any contribution by the employee to the statutory provident fund or recognized provident fund or recognized provident fund . In this regard, deduction is allowable only for one person;
(v) Any contribution by a person of HUF to the Public Provident Fund. Contributions may be made to the account in the name of any person mentioned under clause (i) above;
(vi) any contribution to an employee-approved superannuation fund ;
(vii) (in the name of any member referred to in any membership, sub-section (4)), any security of the Central Government or such deposit scheme as the Government may, by notification in the Official Gazette, specify Is, specify in it from the side;
The following schemes have been notified:
- Membership by a person of HUF in National Savings Scheme, 1992
- Under Sukanya Samriddhi Account Scheme paid or deposited in the name of a girl child, who is below the age of 2016-16
For the purpose of clause (b) above, the amount may be paid by the person’s personal or any girl child, or any girl for whom such person is a legal guardian;
(viii) National Savings Certificate (VIII issue) by a person or any membership for IX problem. Any interest earned on these certificates which is considered reinvestment is also eligible for deduction:
(ix) Modify section 10 (23D) of LIC Mutual Fund in LIC Mutual Fund of India Unit Trust Insurance Plan of Unit of Insurance Plan (formerly known as Fund 1989) Do not contribute. Contributions can be made in the name of any person mentioned under clause (i) above
(x) Payment made by an individual or HUF to implement or hold a contract for a conditional annuity plan of Life Insurance Corporation of India or any other insurer. Naya Jeevan Dhara, Naya Jeevan Dhara – I and Naya Jeevan Akshay, New Jeevan Akshay – I and Naya Jeevan Akshay – II are the schemes which have been emulated;
(xi) Any membership, to units notified by a person of HUF (a) Administrator to any mutual fund referred to in section 10 (23D), OT (B) or referenced in section 2 of the unit trust of the specified company in India. The Equity Linked Saving Scheme, 2005 has been notified;
(xii) Section 10 (23D), or the contribution made by a person to a notified pension fund by the Administrator or any mutual fund specified by the specified company in section 2 of the Unit Trust of India. UTI – Retirement Benefit Pension Fund has since been notified;
(xiii) Contribution by any person of HUF to any membership or any pension fund in any pension scheme established by National Housing Bank. The Home Loan Account Scheme of National Housing Bank has been notified.
(xiv) Membership by a person of HUF of any notified deposit scheme;
- A public sector company engaged in providing long term finance for the construction or purchase of houses in India for residential purpose; or
- Any authority constituted in India under or under any law, either for the purpose of housing or for the planning, development or improvement of cities, towns and villages or for the purpose of meeting the housing requirement for both;
(xv) Any amount paid by a person is paid, as the caution fee satisfies the following conditions:
- Such totals should have been paid as a caution fee, excluding development fees or donations or any payments towards payments of a similar nature.
- It should have been paid at the time of entry or thereafter.
- It is paid to any university, college, school or other educational institution located within India.
- It is paid for the purpose of full-time education.
- It is paid for two children of any such person.
(xvi) Any payment by a person or HUF for the purchase or construction of a resident house property, the income of which is chargeable to tax under ‘Income from house property’. This is how payment can be done:
(D) Stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee.
The following payments will not be eligible for deduction:
- The entry fee, the cost of the share and the initial deposit that a company shareholder or member of a cooperative society has to pay to become such shareholder or member; or
- The cost of any addition or alteration, or renovation or repair, property of the house which is enabled by the authority after issuing the completion certificate in respect of the house property, the competent authority or house property for issuing such certificate or This part has been occupied or abandoned by the assessee or any other person after another; or
- Any expenditure in respect of deduction is allowable under the provisions of section 24;
(xvii) To make a subscription by any person of an equity share or debenture a part of an eligible issue of capital, approved by the Board in an application made in the form prescribed by a public financial institution:
For the purpose of this section:
- “Eligible issue of capital” means an issue created by a public company formed and registered in India or by a public financial institution and the entire proceedings of the issue are used solely and for the purpose of any business referred to in sub-section Goes (4)) Section I-IA;
- “Public company” shall have the meaning assigned to it in section 3 of the Companies Act, 1956;
- “Public financial institution” shall have the meaning assigned to it in section 4A of the Companies Act, 1956;
(xviii) On any application made by such person to any unit of any mutual fund mentioned in section 10 (23D) by any person of the HUF and by any such mutual fund as approved by the Board:
It further states that this clause will be applicable only if the amount of membership of such units is subscribed only in the eligible issue of capital of a company.
For the purposes of this section “eligible issue of capital” means the frequently asked questions in clause (xvii) above.
(xix) Amount deposited in fixed deposit-
- For a fixed term of less than 5 years with a designated bank; And
- Which is in accordance with a scheme officially prepared and revised by the Central Government for the direction of this section.
(xx) Tons of episodes issued by NABARD for agriculture and rural development by the national government, as specified by the Central Government by notification in the Government load.
(xxi) Amount deposited in any account under the Senior Citizen Savings Scheme Rules, 2004
(xxii) Deposit for five years as a deposit in an account under the Post Office Time Deposit Rules, 19 Any11.
According to Income Tax Act,1961 assessee can claim deduction under section 80C when there is income during the previous year. Deduction 80C is very popular among assessee. This section is a Tax saving plan and Income tax Planning and you can claim maximum deduction Rs.1,50,000 or total income during the previous year whichever is higher.