Navigating Tax Deductions: How Can I Maximize Benefits as a 30% Taxpayer?

kavita.uprety
Dear all,

Please help me understand the below-mentioned points related to tax and investment.

1. What investments fall under 80C and up to what figure can a person invest under this section?
2. What investments fall under 80CC and what is the limit?
3. What investments fall under 80CCC and what is the limit?
4. Tax benefit in Mediclaim.
5. Tax relief by home loan & education loan and the limit, if any.

Finally, up to what extent can a person show investments and take benefits if they are a 30% slab tax payer.

Looking forward to your replies.

Thanks in advance.
dalipbisht
The following savings and investments are eligible for the purpose of claiming the benefit of deduction under Sec. 80C up to a maximum amount of Rs. 1 lakh with sectoral ceiling indicated wherever applicable.

(1) Payment of Life Insurance Premium for the individual himself, his spouse and/or children (minor or major).

(2) Payment of premium by an individual on the life of the individual, wife/husband, and any child of such individual for a non-commutable deferred annuity contract.

(3) Contribution by an individual towards statutory or recognized Provident Fund.

(4) Contribution to Public Provident Fund (PPF) by an individual in his own account or in the account of his/her spouse or children.

(5) Contribution by an employee to an approved superannuation fund.

(6) Contribution to Unit Linked Insurance Plan (ULIP) by an individual or a HUF.

(7) Purchase of National Savings Certificate (NSC VIII Issue). The interest accrued on such NSCs will also be entitled to deduction as the amount reinvested.

(8) Premium paid by an individual to the Home Loan Account Scheme of the National Housing Bank.

(9) Investment by an individual or a HUF in the National Savings Scheme (NSS).

(10) Investment by an individual in a notified annuity plan of LIC or any other notified insurer.

(11) Premium paid by an individual or a HUF to units invested under Equity Linked Savings Scheme (ELSS) of any mutual fund or Unit Trust of India. There is a lock-in period of three years for such investments.

(12) Contribution by an individual to any notified pension fund set up by mutual funds or Unit Trust of India.

(13) Payment of tuition fees for full-time education of any two children of an individual.

(14) Payment towards the purchase or construction of a residential house, including repayment of housing loan, stamp duty, and registration fees.

(15) Investment in shares or debentures of any public company engaged in power, telecom, or infrastructure sectors or investment in units of mutual funds investing in such priority sectors.

(16) Amount deposited as a term deposit for five years or more in accordance with a scheme framed by the Central Government.

(17) Five-year time deposit in an account with the Post Office.

(18) Deposit in an account under the Senior Citizens Savings Scheme.

(19) Bonds in National Bank for Agriculture and Rural Development (Nabard).

Thanks,

Dalip
pon1965
Max limit for 80C, CC & CCC is 1 L. Mediclaim is exempted from tax. Housing loan interest up to 1.5L is deductible from the taxable income. Principal payment is coming under 1 L limit. Education loan repayment is taxable.

Please let me know if you need any further assistance with this information.
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