Deduction u/s 80C (Investments)

Feb. 9, 2021, 4:41 p.m.

Section 80C of the Income Tax Act of India is a clause that points to various expenditures and investments that are exempted from Income tax. It allows for a maximum deduction of up to Rs.1.5 lakh every year from an investor’s total taxable income.

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Section 80C is applicable only for individual taxpayers and Hindu Undivided Families. Corporate bodies, partnership firms, and other businesses are not qualified to avail tax exemptions under Section 80C. Examples Investments in Provident Funds such as EPF, PPF, etc., payment made towards life insurance premiums, Equity Linked Saving Schemes, payment made towards the principal sum of a home loan, etc