2. Section 80C
• Deduction for :
Individuals( whether in job or business)
Or
HUF( in certain cases only)
Not for companies & Partnership Firms
• Maximum Deduction:
Rs 1,50,000 for Section 80C
3. Section 80C
• Assessee makes certain investments on which the deductions are available in this
section.
• Investments covered:
• LIC
• Employee contribution to RPF/SPF/Superannuation Fund
• NSC
• PPF
• ULIP
• FD, Deposits > 5 years
• Senior Citizen Scheme
• Mutual Funds
• Notified Pension Scheme
• Non commutable deferred annuity plan
• Sukanya Samridhi Account scheme
• Expenses covered:
• Stamp duty on purchase of property
• Repayment on housing loan( principal amount only)
• Tuition fees paid for children
• Amount deducted for deferred annuity
4. Deduction under 80C for individuals
• Life Insurance scheme- only insurance premium of self , spouse and children covered(not parents)
• Employee contribution to recognised provident fund, statutory provident fund and approved
superannuation fund( only employee contribution covered and not the employers contribution)
• Contribution to mutual fund, equity linked saving scheme
• Contribution to notified pension scheme of UTI
• Non commutable deferred annuity plan for self spouse and children
• Tuition fees paid for children
• Following conditions must be satisfied:
It should be full time education
It should be paid to University , college , schools situated within India
It should be for 2 children maximum
Note
Development fees not covered only tuition fees covered
Education for children only not for self and spouse
Even play school tuition fees covered
Deferred annuity:
Amount deducted for deferred annuity is only 1/5 th of salary
5. • Sukanya Samridhi Account scheme
• Deductions is allowed with respect to sums paid or
deposited in the previous year as a subscription to any such
security of central government or any deposit scheme
notified by the government.
• Eligible amount of deduction
• The individual himself or herself
• The girl child of the individual
• Any girl child for whom the individual is a legal guardian
Interest on deposit is exempt from tax( section 10(11A))
