Tax saving Guide U/s 80/C 2015-16

TAX Saving Guide
U/S 80-C
2015-16
Mehul Bheda (B.Com,RFC,CFP)
Certified Financial Planner

Most of the Income Tax payee try to save tax by saving under Section 80/C of
the Income Tax Act. However, it is important to know the Section in to so that
one can make best use of the options available for exemption under income tax
Act.
One important point to note here is that one can not only save tax by
undertaking the specified investments, but some expenditure
which you normally incur can also give you the tax exemptions. Here are some
tips for you:
Maximum Limit to Save U/s 80-C
For Financial Year 2015-16 is Rs 1,50,000/-

1) HOUSING LOAN –Principal Amount / Stamp Duty
There is a provision that the payment made for repayment of
the principal amount (not interest payment) of the Home Loan
is eligible for a deduction under Section 80C if you have taken
a home loan and you fulfill certain conditions.
( The Deduction OF Interest Component can be claimed U/s 24
Of Income Tax Act.)
“The Amount paid as Stamp Duty & Registration Fee is
also allowed as tax deduction under Section 80C even if the
Assessee has not taken Loan."

2) Education Fees / Tution Fees
If you are incurring expenditure on education fees is also
eligible for a deduction under Income Tax Act, You can
claim a deduction of payment made for tuition fee to any
university, college, school or any other educational
institution.
It can only be claimed in respect of two dependent children
and for fees to an educational institution within India and,
for tuition fee only.
Payment as donation or development fee to an
educational institution does not qualify

3) Life Insurance Premium
Life Insurance Premium (By LIC Or Any Private
Insurer) Paid for Self , Spouse & Children are
Eligible For deduction U/s 80-C.
From 1st April 2013 Only Premium Equal to
10% Of Sum assured will be allowed.

4) Provident Fund / EPF
For Salaried Employees, PF (Provident Fund) is Default
Investment Which Qualify For Deduction U/s 80-C.
Your contribution (i.e., employee’s contribution) is
counted towards section 80C investments. You also
have the option to contribute additional amounts
through voluntary contributions (VPF).

5) Public Provident Fund (PPF)
Among all the assured returns small saving schemes,
Public Provident Fund (PPF) is one of the best.
Current rate of interest is 8.7%.
Maturity period is 15 Years

6) Unit Linked Insurance Plan
All ULIPs qualify as life insurance policy and the
premiums are exempted from income tax benefit. ULIPS
area Combination Of Insurance & Invetments.
Our Suggestion :There are Other Investment Option
Which can Yield better Return at Lower Cost. SO
AVOID INVESTMENT IN ULIPS

7 ) Five Year Bank Fixed Deposit
There are Special 5 years Bank Fixed Deposit Which are
eligible For Deduction U/s 80-C.
Interest are Taxable so avoid

8) Five Years Postal Time Deposit (POTD)
POTDs are similar to bank fixed deposits. Deposits in 5
year time deposit qualify for deduction under section 80-
C of Income Tax Ac.
Current Ineterest rate is 8.50%
The Interest is entirely taxable.

9) National Savings Certificate (NSC):
NSC is a saving bond, primarily used for small saving and
income tax saving investment in India.You can purchase
same through Post office. Current Rate of Interest is
8.5% ( 5 Years NSC) ,8.80% ( 10 Years NSC).
Ineterst Accrued Every year is liable to Tax, But Interest
is deemed to be Reinvested and thus eligible For Section
80-C.

10) Senior Citizen Savings Scheme 2004 (SCSS)
An individual who has attained the age of 60 years or
above on the date of opening of a/c or an individual who
attained the age of 55 years or more and who has retired
under VRS/SPL.
VRS, can open an account individually or jointly with
spouse.
Current rate of interest is 9.30% per annum payable
quarterly.
Term- 5 Year Interest income is chargeable to tax.
W.E.F 1st April 97 This Scheme Qualify For Tax Benifite

11) ELSS ( Equity Linked Saving Scheme)
There are Specific ELSS Schemes (Not all MF Schemes)
under Mutual Fund , Eligible For Tax Saving U/s 80-C
Of Income Tax Act.
ELSS Schemes have Lock In period Of Only 3 Years.
If You Continue to Invest in ELSS Scheme For Long
term Than ELSS has Potential to generate Wealth For
You.

12) Sukanya Samridhi Account
A guardian can open only one account in the name of one Girl child
and maximum two accounts in the name of two different Girl
children. Account can be opened up to age of 10 years only from
the date of birth
Account can be closed after completion of 21 years. Of Child
Interest Rate 9.20% (From 1st April2015)
Minimum Investment- Rs 1000 Max -1.50 Lakh in a
Financial Year

M : +91 9819592326
E : mebheda@gmail.com

Tax saving Guide U/s 80/C 2015-16

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