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Income Tax Benefits Under Section 80C for FY 2016 To 2017

    Mr. C.S. Sudheer | Tuesday, October 11,2016, 07:42 PM
 

Three things are certain in life: Death, Taxes and BILLS.”

                                                                                                -  Ankala V Subbarao

You cannot stop death. As long as you live on this planet, bills have to be paid. Fortunately for you, tax can be saved. You can avail income tax deductions, under Section 80 C of the income tax act. Yes….the Government has given you a way, to save on taxes. Now it is up to you, to study the Section 80 C deductions and grab this opportunity, to save on tax. Section 80 C has something for everyone.

“Tax evasion is a crime. Tax avoidance is not a crime.”

IndianMoney.com believes that, “If a Family Doctor is a need, than Family Wealth Doctor is a necessity.” IndianMoney.com believes that the dream of a developed India is possible, only when we achieve 100% financial literacy. Just leave a missed call on IndianMoney.com financial education helpline 02261816111 or just post a request on IndianMoney.com website. 

What is Section 80 C?

You get a tax deduction up to INR 1.5 lakhs a year, under Section 80 C of the income tax act. You get this benefit, only if you invest in certain tax saving financial instruments.

Income Tax Benefits Under Section 80 C

Premiums On Life Insurance:

You pay a premium and avail a life insurance plan. You get Section 80 C deductions, up to INR 1.5 Lakhs a year, on the premiums you pay for term life insurance plans, whole life insurance plans, endowment life insurance plans, money back life insurance plans or even ULIPs.

Remember: Avail life insurance plans, especially term life insurance plans for risk protection, if you have dependents. Section 80 C tax benefits, are a bonus.

Tax Benefits On Home Loan

You get tax deductions under Section 80 C of the income tax act, up to INR 1.5 Lakhs a year, on the EMI (Principal component) of your home loan. You avail a joint home loan with your working spouse? Both you and spouse, can avail a home loan for the same property, in both your names, called the joint home loan. Both of you can avail tax deductions separately, up to INR 1.5 Lakhs a year, under Section 80 C of the income tax act.

Remember: The Section 80 C tax deduction, is very good for married couples availing a joint home loan, to buy their first home.

Tax Benefits On PPF

The public provident fund popularly called PPF, is a favorite investment, for several of our citizens. You get a tax deduction under Section 80 C, up to INR 1.5 Lakhs a year, on your investment in the PPF.

Remember: PPF interest rates are revised every quarter. PPF interest rates have been fixed at 8%, for the October to December quarter. PPF is an excellent investment (EEE) and gives returns above inflation, over the long term.

Tax Benefits On ELSS

You get a tax deduction, up to INR 1.5 Lakhs a year under Section 80 C, on the investment you make in an ELSS. You’re young, tech savvy and love to take risk in your investments. The equity linked saving scheme, popularly called ELSS, is just the right investment for you. With a short lock-in of 3 years, this is the shortest lock-in among all financial instruments, which enjoy Section 80C benefits.

Remember: With an equity component of over 80% and a lock-in of 3 years, ELSS is a very good long term investment.

Section 80C Benefits On Tax Saving FD

You get tax deductions under Section 80 C of the income tax act, up to INR 1.5 Lakhs a year, on your investment in a tax saving FD. This tax benefit is available only for tax saving fixed deposits, which have a lock-in of 5 years.

Tax Benefits On Senior Citizen Saving Scheme

You (senior citizen), get a tax deduction under Section 80 C, up to INR 1.5 Lakhs a year, for your investment in the senior citizen saving scheme. The senior citizen saving scheme, is designed only for senior citizens. It has a tenure of 5 years. You get an interest of 8.6% per year, for your investment in the senior citizen saving scheme (SCSS).

Tax Benefits On National Savings Certificate

You get a tax benefit under Section 80 C, up to INR 1.5 Lakhs a year, for your investment in NSC (National Savings Certificate). It has a maturity of 5 years. Interest rates offered are 8.1%, for the quarter April to June 2016.

Tax Benefits On Post Office Time Deposits

You get a tax benefit under Section 80 C, up to INR 1.5 Lakhs a year, for your investment in post office time deposit schemes. The post office time deposit schemes, should have a maturity of 5 years. Interest rates offered are 7.9%, for the quarter April to June 2016.

Tax Benefits On Sukanya Samriddhi Account

You have a minor girl child (10 years old or less). Simply open a Sukanya Samriddhi Account and avail tax deductions under Section 80 C, up to INR 1.5 Lakhs a year, on the invested amount.

You also get Section 80 C benefits on:

  • Registration, sale deed and stamp duty fees, on your home purchase.
  • Tuition fees for an education, for yourself or children.

Heard this great saying by a former US President, “Make sure you pay your taxes; otherwise you can get in a lot of trouble.”

                                                                                                                                                                                                       – Richard M. Nixon

Why run away from the taxman, when you have Section 80 C to protect you? Just learn how to use it and be a master of taxes.

Mr. C.S. Sudheer

Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.

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