Exemptions Clauses in Income Tax

POSTED BY VinManHBK007 ON December 28, 2011 5:12 pm ONE COMMENT

Hello Tax Gurus and Finance Wizards

I would like to know tax deductions under Section 80C, 80CCC and 80CCD ?

Are there any more sections under which we can claim exemptions and their amount ?

I am especially interested to know exemptions and their amount for contribution to Pension scheme from LIC or NPS, investment to infrastructure bonds etc and any other investments which are tax free.

Thank you for your kind help and valuable time in advance.

Regards

Vinay Maithani

One reply on this article “Exemptions Clauses in Income Tax”

  1. Dear Vinay maithani, I’m trying to answer your query.

    A lot of different investments, pay out, expenses are eligible for tax saving under the grand umbrella of 80C.

    PF
    PPF
    Life Ins. prem.
    Pension Plan prem.
    Eq. Linked Saving Schemes (a.k.a. tax saver MFs)
    Retirement oriented MFs (as on date only 2 funds – UTI Ret. benefit plan & Templeton India Pension Plan are eligible)
    NPS Tier 1 account
    NSC
    Tax saving 5Y bank FD
    PO Term Deposit of 5Y
    Sr. Citizen saving scheme in the year of investment
    Tuition fee paid to school college for your kids
    Home loan principal repayment
    …….
    All the above investments are eligible for max. 1L Rs. 80C limit for tax saving.

    Prem. paid to pension plans of life insurance cos. are eligible for tax saving under section 80CCC within the over all ceiling of 1L Rs. limit under section 80C.

    For Govt. employees since 1st of Jan 2004, the NPS is running & contributions made to it from their salary falls under section 80CCD within the over all ceiling of 80C 1L limit.

    since FY 2010-2011, a new instrument has been made available for tax saving purpose. It’s called infra bond & it’s eligible for separate 20K limit under section 80CCF above that 1L Rs. limit of 80C.

    Apart from the above, there is 80D – 15K amount prem. paid for self & family mediclaim policy. Another 15K for parents & 20K if one of the parents is a Sr. citizen.

    then there is section 80E – Interest paid for education loan with out any ceiling but only for 8Y starting from the first claim year, for the education loan taken for self, spouse, kids.

    Thanks

    Ashal

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