How can I save my tax after 80 C? Recommended ways of saving taxes under Sec 80C,80D and 80EE Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income. Buy
How can I save my tax after 80 C?
Recommended ways of saving taxes under Sec 80C,80D and 80EE
- Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
- Buy Medical Insurance, maximum deduction allowed is Rs.
- Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.
Is deduction u/s 80 helpful in tax planning?
Section 80C allows deduction from gross total income (before arriving at taxable income) of up to Rs 1.5 lakh per annum on one or more eligible investments and specified expenses. For someone in the highest 30 per cent income tax bracket, it’s an additional annual saving of about Rs 15,000.
What are the tax saving options under 80C 80D and 80g?
| Investment options | Average Interest | Lock in period for |
|---|---|---|
| Tax saving FD | 7% – 8% | 5 years |
| PPF | 7.10% | 5 years |
| Senior citizen savings scheme | 7.4% | 5years (can be extended for other 3 years) |
| National | 6.8% | 5 years |
Which option is best for tax saving?
ELSS (Equity-Linked Saving Scheme) Mutual Fund.
Can I invest more than 1.5 lakhs in 80C?
According to chartered accountants, this is necessary to claim the full tax-saving benefit of Rs 1.5 lakh, which is the maximum allowed under section 80C. However, in order to do this you may have to end up investing at least Rs 500 more than Rs 1.5 lakh i.e. Rs 1,50,500 in case of a lump sum investment.
What is the limit of 80G?
*Deduction under Section 80G is limited to a maximum of 10% of the Gross Total Income. The balance income after deductions of donations would be taxable as per the income tax slabs of the taxpayer.
What is the tax slab for 2020-21?
Income tax slab rate applicable for New Tax regime – FY 2020-21.
| Income Tax Slab | New Regime Income Tax Slab Rates FY 2020-21 (Applicable for All Individuals & HUF) |
|---|---|
| Rs 0.0 – Rs 2.5 Lakhs | NIL |
| Rs 2.5 lakhs- Rs 3.00 Lakhs | 5% (tax rebate u/s 87a is available) |
| Rs. 3.00 lakhs – Rs 5.00 Lakhs | |
| Rs. 5.00 lakhs- Rs 7.5 Lakhs | 10% |
How can I save my tax in 2020-21?
Here’s a list of popular investment options to save tax under section 80C.
- Public Provident Fund.
- National Pension Scheme.
- Premium Paid for Life Insurance policy.
- National Savings Certificate.
- Equity Linked Savings Scheme.
- Home loan’s principal amount.
- Fixed deposit for a duration of five years.
- Sukanya Samariddhi account.