Hi All, Is it Employee PF comes under 80 C exemption?. We can save 1 lakh under 80C including employee PF or not? Thanks & Regards Bapuji
From India, Madras
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From India, Madras
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Hi Only Employee PF Contribution will be part of 80C Bracket and not employer contribution Regards Venkat
From India, Noida
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12From India, Noida
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Dear Friend, Ee. contrbtn. towards PF will be taken under sec 80c of IT Act,1961 with friendship, P.Sathish Kumar
From India, Jaipur
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From India, Jaipur
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Only PF Employee contribution (i.e. 12% of Basic+DA) & VPF come under 80C. The Maximum Exemption under 80C is Rs. 100,000/-. The following investments also come under 80C:
- 80CCC - Contribution to certain pension funds
- 80CCD - Contribution to Pension Scheme of Central Government
- Life Insurance Premium paid by an employee, on his life, his/her spouse/life of any child (including adult children and a married daughter but parents are not included)
- Deferred Annuity
- Public Provident Fund (PPF) - Photocopy of the Passbook & Copy of the deposit slip
- Unit Linked Insurance Plan (ULIP) of UTI/ LIC Mutual Fund
- Mutual Funds
- Infrastructure Bonds
- National Saving Certificate Deposit (NSC)
- Accrued Interest on NSC (Copy of Old Certificates to be Enclosed)
- National Saving Scheme (NSS)
- Housing Loan Principal Repayment
- Tuition Fees (excluding development fees, donation, and such other expenses)
- NHB Scheme
- Others (Specify)
- Investment in term Deposit in a scheduled bank for not less than 5 years (preferably in Nationalized Bank) / Post Office
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Narendra B.R.
From United States, Ogden
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- 80CCC - Contribution to certain pension funds
- 80CCD - Contribution to Pension Scheme of Central Government
- Life Insurance Premium paid by an employee, on his life, his/her spouse/life of any child (including adult children and a married daughter but parents are not included)
- Deferred Annuity
- Public Provident Fund (PPF) - Photocopy of the Passbook & Copy of the deposit slip
- Unit Linked Insurance Plan (ULIP) of UTI/ LIC Mutual Fund
- Mutual Funds
- Infrastructure Bonds
- National Saving Certificate Deposit (NSC)
- Accrued Interest on NSC (Copy of Old Certificates to be Enclosed)
- National Saving Scheme (NSS)
- Housing Loan Principal Repayment
- Tuition Fees (excluding development fees, donation, and such other expenses)
- NHB Scheme
- Others (Specify)
- Investment in term Deposit in a scheduled bank for not less than 5 years (preferably in Nationalized Bank) / Post Office
Regards,
Narendra B.R.
From United States, Ogden
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Hi All,
Check the details below regarding Indian Income Tax Deduction - Section 80C. Maybe it will be useful for all.
Indian Income Tax deduction - Section 80C (official page India Income Tax Act)
Section 80C of the Indian Income Tax Act is the most popular because it is directly related to tax deductions for your monthly savings or life insurance. In the financial years 2008/2009 and 2009/2010, the maximum income tax deduction allowed under section 80C is 1,00,000. The following is a list of important ways in which a taxpayer can benefit from section 80C of the Indian Income Tax Act.
1. Provident Fund (PF): Any contributions to Provident Fund, Voluntary Provident Fund (VPF), or savings made in Public Provident Fund (PPF Account) are eligible for income tax deduction under section 80C of the Indian Income Tax Act.
2. Life Insurance Premiums: Any life insurance premiums (for one or more insurance policies) paid by you for yourself, your spouse, or your children are eligible for income tax deduction under section 80C of the Indian Income Tax Act.
3. ELSS Equity Linked Saving Schemes: Any investment made in certain Mutual Funds called equity-linked saving schemes qualifies for section 80C deduction. Please note that not all mutual fund investments are eligible for this deduction. Some examples of ELSS funds are: SBI Magnum Tax Gain, HDFC Tax Saver, HDFC Long-term advantage, etc.
4. ULIP (Unit Linked Insurance Plan): Investments made in certain ULIPs of Unit Trust of India and LIC of India are eligible for 80C deduction.
5. Bank Fixed deposits or Term deposits of >5 years: According to a relatively new provision, the amount saved in fixed deposits of a term of at least five years is eligible for income tax deduction under section 80C of the Indian Income Tax Act.
6. Principal part of EMI on Housing Loan: If you are paying EMI on a housing loan, note that the EMI (equated monthly installments) consists of two parts - principal part and interest part. The principal part of the EMI on your housing loan is eligible for income tax deduction under section 80C. Note that the interest part is also eligible for tax deduction, however not under section 80C but section 24. If you do not own a house but pay rent for it, see section 80GG of the Indian Income Tax Act below.
7. Tuition Fees: Amount paid as tuition fees for the education of two children of the assessee is eligible for deduction under section 80C of the Indian Income Tax Act.
8. Other 80C deductions: Amount saved in National Saving Certificate (NSC), Infrastructure Bonds or Infra Bonds, amount paid as stamp duty and registration charges while buying a new home are eligible for income tax deductions under section 80C of the Indian Income Tax Act.
Indian Income Tax deduction - Section 80D: (official page Indian Income Tax Act)
Section 80D of the Indian Income Tax Act is especially useful if your employer does not cover your health or medical expenses. It is a good idea to get medical insurance or health insurance for yourself, your spouse, dependent children, or dependent parents, as you can claim a deduction of up to Rs. 15000/- per annum for the premiums paid on this insurance. For senior citizens, this limit is Rs. 20000. With effect from 1-4-2009, you can claim the total of the following items for deduction under section 80D.
1. Total amount of premium paid for health insurance of family (meaning spouse + children), or Rs. 15,000, whichever is less.
2. Total amount of premium paid for health insurance of your parents or Rs. 15,000, whichever is less.
Thus, if you are paying premiums of mediclaim policies for your spouse, children, and parents, you can get a total tax deduction of up to Rs. 30,000.
Indian Income Tax deduction - Section 80DD: (official page Indian Income Tax Act)
Section 80DD of the Indian Income Tax Act provides a provision for tax deduction if you incurred medical expenditure for dependents who are disabled. Here, dependent means spouse, children, brothers, sisters, or any one of them. The maximum tax deduction provided by section 80DD is Rs. 50000 in case of ordinary disability and Rs. 75000 if the disability is severe. The definition of severe disability is as defined in the official page of the Indian Income Tax Act.
Indian Income Tax deduction - Section 24: (official page Indian Income Tax Act)
Whenever you take a housing loan to build or buy a new home, the interest payable on this home loan is eligible for income tax deduction under section 24. The maximum deductible amount, i.e., the maximum interest you can claim for income tax deduction under section 24 is Rs. 1,50,000. In case you are paying interest on money borrowed for the renovation of your home, even this may qualify for tax deduction under section 24 of the Indian Income Tax Act.
Indian Income Tax deduction - Section 80GG: (official page - Indian Income Tax Act)
If you pay rent for the house that you are staying in and do not get HRA, any rent you pay in excess of 10 percent of your salary is eligible for income tax deduction under section 80GG of the Indian Income Tax Act. The income tax deduction you can claim is the minimum of the following amounts.
1. Rent you pay minus 10% of your salary.
2. 25% of your gross total income.
3. Rs. 2000/- per month.
Indian Income Tax deduction - Section 80E: (official page Indian Income Tax Act)
Under section 80E of the Indian Income Tax Act, any amount of interest paid on an educational loan taken for your higher education or the higher education of your husband/wife or children is deductible from your taxable income. Here, higher education means studies for any graduate or post-graduate course in engineering, medicine, management, or for a post-graduate course in applied sciences or pure sciences including mathematics and statistics.
Indian Income Tax deduction - Section 80G: (official page Indian Income Tax Act)
Donations made to funds like the Prime Minister's Relief Fund, National Children Foundation, any University or educational institution of 'national eminence', etc. are deductible from your taxable income according to section 80G of the Indian Income Tax Act. For any other donations, you are eligible to take income tax deduction for 50% of the donation amount. See the official page of the Indian Income Tax Act for the complete list.
From India, Hyderabad
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Check the details below regarding Indian Income Tax Deduction - Section 80C. Maybe it will be useful for all.
Indian Income Tax deduction - Section 80C (official page India Income Tax Act)
Section 80C of the Indian Income Tax Act is the most popular because it is directly related to tax deductions for your monthly savings or life insurance. In the financial years 2008/2009 and 2009/2010, the maximum income tax deduction allowed under section 80C is 1,00,000. The following is a list of important ways in which a taxpayer can benefit from section 80C of the Indian Income Tax Act.
1. Provident Fund (PF): Any contributions to Provident Fund, Voluntary Provident Fund (VPF), or savings made in Public Provident Fund (PPF Account) are eligible for income tax deduction under section 80C of the Indian Income Tax Act.
2. Life Insurance Premiums: Any life insurance premiums (for one or more insurance policies) paid by you for yourself, your spouse, or your children are eligible for income tax deduction under section 80C of the Indian Income Tax Act.
3. ELSS Equity Linked Saving Schemes: Any investment made in certain Mutual Funds called equity-linked saving schemes qualifies for section 80C deduction. Please note that not all mutual fund investments are eligible for this deduction. Some examples of ELSS funds are: SBI Magnum Tax Gain, HDFC Tax Saver, HDFC Long-term advantage, etc.
4. ULIP (Unit Linked Insurance Plan): Investments made in certain ULIPs of Unit Trust of India and LIC of India are eligible for 80C deduction.
5. Bank Fixed deposits or Term deposits of >5 years: According to a relatively new provision, the amount saved in fixed deposits of a term of at least five years is eligible for income tax deduction under section 80C of the Indian Income Tax Act.
6. Principal part of EMI on Housing Loan: If you are paying EMI on a housing loan, note that the EMI (equated monthly installments) consists of two parts - principal part and interest part. The principal part of the EMI on your housing loan is eligible for income tax deduction under section 80C. Note that the interest part is also eligible for tax deduction, however not under section 80C but section 24. If you do not own a house but pay rent for it, see section 80GG of the Indian Income Tax Act below.
7. Tuition Fees: Amount paid as tuition fees for the education of two children of the assessee is eligible for deduction under section 80C of the Indian Income Tax Act.
8. Other 80C deductions: Amount saved in National Saving Certificate (NSC), Infrastructure Bonds or Infra Bonds, amount paid as stamp duty and registration charges while buying a new home are eligible for income tax deductions under section 80C of the Indian Income Tax Act.
Indian Income Tax deduction - Section 80D: (official page Indian Income Tax Act)
Section 80D of the Indian Income Tax Act is especially useful if your employer does not cover your health or medical expenses. It is a good idea to get medical insurance or health insurance for yourself, your spouse, dependent children, or dependent parents, as you can claim a deduction of up to Rs. 15000/- per annum for the premiums paid on this insurance. For senior citizens, this limit is Rs. 20000. With effect from 1-4-2009, you can claim the total of the following items for deduction under section 80D.
1. Total amount of premium paid for health insurance of family (meaning spouse + children), or Rs. 15,000, whichever is less.
2. Total amount of premium paid for health insurance of your parents or Rs. 15,000, whichever is less.
Thus, if you are paying premiums of mediclaim policies for your spouse, children, and parents, you can get a total tax deduction of up to Rs. 30,000.
Indian Income Tax deduction - Section 80DD: (official page Indian Income Tax Act)
Section 80DD of the Indian Income Tax Act provides a provision for tax deduction if you incurred medical expenditure for dependents who are disabled. Here, dependent means spouse, children, brothers, sisters, or any one of them. The maximum tax deduction provided by section 80DD is Rs. 50000 in case of ordinary disability and Rs. 75000 if the disability is severe. The definition of severe disability is as defined in the official page of the Indian Income Tax Act.
Indian Income Tax deduction - Section 24: (official page Indian Income Tax Act)
Whenever you take a housing loan to build or buy a new home, the interest payable on this home loan is eligible for income tax deduction under section 24. The maximum deductible amount, i.e., the maximum interest you can claim for income tax deduction under section 24 is Rs. 1,50,000. In case you are paying interest on money borrowed for the renovation of your home, even this may qualify for tax deduction under section 24 of the Indian Income Tax Act.
Indian Income Tax deduction - Section 80GG: (official page - Indian Income Tax Act)
If you pay rent for the house that you are staying in and do not get HRA, any rent you pay in excess of 10 percent of your salary is eligible for income tax deduction under section 80GG of the Indian Income Tax Act. The income tax deduction you can claim is the minimum of the following amounts.
1. Rent you pay minus 10% of your salary.
2. 25% of your gross total income.
3. Rs. 2000/- per month.
Indian Income Tax deduction - Section 80E: (official page Indian Income Tax Act)
Under section 80E of the Indian Income Tax Act, any amount of interest paid on an educational loan taken for your higher education or the higher education of your husband/wife or children is deductible from your taxable income. Here, higher education means studies for any graduate or post-graduate course in engineering, medicine, management, or for a post-graduate course in applied sciences or pure sciences including mathematics and statistics.
Indian Income Tax deduction - Section 80G: (official page Indian Income Tax Act)
Donations made to funds like the Prime Minister's Relief Fund, National Children Foundation, any University or educational institution of 'national eminence', etc. are deductible from your taxable income according to section 80G of the Indian Income Tax Act. For any other donations, you are eligible to take income tax deduction for 50% of the donation amount. See the official page of the Indian Income Tax Act for the complete list.
From India, Hyderabad
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Salaried income tax payers usually have forced savings that are eligible for deduction under section 80C. A fixed percentage of basic salary (ranging from 8.33% to 12%) is deducted by your employer towards the Employees' Provident Fund (EPF). Some employers allow a higher deduction towards EPF. Thus, you should first check the total amount expected to be deducted towards EPF during the financial year. The total amount deducted from your salary will be eligible for investments under Section 80C.
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