Income Tax Deduction Under Section 80 C

 

Income Tax Deduction under section 80 C… First assesse calculate total income form five Head of income

1. Income from salary
2. Income from House Property
3. Income from Business & Profession
4. Income from Capital Gain
5. Income from other sources

Aggregate of Five head of income are called Total income

Income Tax Deduction under section 80 C is allowable from total taxable income under Income Tax Act 1961

Income Tax Deduction under section 80 C     any individual or a Hindu undivided family paid or invest any income in the following

1..Life Insurance premium paid for self and spouse & children’s

2. Contribution to provident Fund
3. Contribution to public provident Fund
4. Tuition Fee for full time education for collage, school or other educational institution situated in India.
5. Contribution to a recognized provident fund.
6. Contribution to an approved superannuation.
7. Repayment of home loan for the purpose of purchase or construction of a residential house property.
8. Term deposit (Fixed deposit for a period not less than five years with a bank.
9. Subscription to any unit of mutual fund referred to in clause 23D
10. Subscription to a bond issued by National Bank for agriculture and rural development.

Deduction

1. Amount spent on above.

2. Rs.1, 50,000

Whichever is less?

For Example

Mr. Krishnan paid premium for spouse Rs.35, 000 and tuition fee Rs.45, 000 paid for two children’s. He also paid Rs.50, 000 for house loan repayment and Rs.60, 000 for contribution to provident fund.

Above mention Mr. Krishnan   total spent Rs. 1, 90,000

So that he can claim deduction under section 80C Rs.1, 50,000

If Mr. Krishnan   Total spent Rs. 1, 40, 000

then he can claim deduction maximum Rs.1, 40,000

Conclusion:

Income Tax Deduction under section 80 C is allowable from total income to an assesse.

So maximum deduction Rs. 1, 50,000 or Amount spent under above mention whichever is less is allowable under section 80C.