Understanding Section 80 and 80C Deductions: Can Someone Explain the Differences?

Hi,

Can anyone tell me what Section 80 deductions are? Also, what are Section 80C deductions?

Thanks,
Sandy

Dear Sandy ,

Under Sec 80

Equity Linked Saving Scheme (ELSS) Maximum amt Rs 10,000 Tax Savings 15% or 20%

Mutual Fund Pension Plan Maximum amt Rs 70,000, Savings 15% or 20%

Infrastructure Bonds Maximum amt Rs 1,00,000,Savings 15% or 20%

Public Provident Fund (PPF) Maximum amt Rs 70,000,Savings 15% or 20%

National Saving Certificate (NSC) Maximum amt Rs 70,000,Savings 15% or 20%

ULIP of UTI Maximum amt Rs 70,000,Savings 15% or 20%

LIC premiums Maximum amt Rs 70,000,Savings 15% or 20%

Return of Principal of Housing Loan Maximum amt Rs 20,000,Savings 15% or 20%

Maximum amount eligible for tax relief under section 88 and 80CCC. Rs 1,10,000

Under 80C, an employee is entitled to deductions for the amounts paid or deposited in the current financial year in the following schemes, subject to a limit of Rs.100, 000/-:

• Life Insurance Premium

• Contributions to recognized Provident Fund / V P F / P P F

• Contributions to approved Superannuation Fund

• Cumulative Time Deposit A/c with P O

• Contribution to U L I P, 1971 of Unit Trust of India

• Contribution to U L I P of LIC Mutual Funds

• Annuity with Insurance Company

• Subscription to Mutual Fund

• Subscription to deposit schemes of National Housing Bank

• Subscription to NSC & Interest accrued on NSC subscription

hope this helps u

Regards

shubha[/list]

Hi Shubha,

Thanks for elaborating on it. Can you provide any online resources from where I can get more information on Income Tax and related topics? I could not find the same on the IT website.

Thank you in advance.

Warmly,
Shashank

Dear Dipika,

Right now, I don't know any information about 217A. I shall find out and let you know.

Regards,
Shubha

Hi Shubha,

I need one more clarification for income tax calculation. What will be the maximum amount we can be exempted? For example:

1. Once income is 450,000/- p.a., then he will generally be exempted up to Rs. 1 lakh.
2. If he shows documents under Sec 80 for Rs. 1.10 lakh.
3. If he shows under Sec 80 C for Rs. 1 lakh.

Therefore, his total exemption is Rs. 3.10 lakh. The remaining Rs. 1.40 lakh, as he is eligible to pay the tax.

Can you provide your contact number or email ID for further contact?

Email: ramya@bioenabletech.com

Thanks & regards,
Ramya Shankar

I was going through an article on Section 80D and have certain doubts.

Section 80D Limits

First, under Section 80D limits, the total for self and family is given as ₹25,000 without adding ₹5,000. Why is this done?

Example of Senior Citizen Deductions

The second doubt is related to the example where it discusses a senior citizen (self) and senior citizen parents. Here, the self is also a senior citizen, but still, ₹25,000 is taken and not ₹30,000. Why is this done?

I am attaching the article and have marked my doubts in red. Kindly help me out.

Regards,
Mariya