Question: How Much Can I Save In 80c?

Can I invest more than 1.5 lakhs in 80c?

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act..

How can I save my tax in 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

Is 80c limit increased?

So, we expect that in the Budget 2020 the limit of Section 80C will get hiked from Rs 1.5 lakh to Rs 2.5 lakh. … Thus, if the threshold limit of Section 80C is increased by the FM in the Budget 2020, this will not only boost investments, but also provide a majority of taxpayers the much-needed relief.

Can I save tax more than 1.5 lakh?

The most popular avenue for tax-saving is section 80C of the Income Tax Act. Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount.

What if I invest more than 1.5 lakhs in PPF?

The maximum limit of Rs 1.5 lakh implies that you cannot claim deduction on full amount when the sum of your total contribution in PPF account and other schemes allowed under Section 80 is more than Rs 1.5 lakh in a financial year.

Is 80c removed in 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … However, all without deductions.

What is the 80c limit for 2019 20?

The total deduction under Section 80C is INR 150,000 in FY 2019-20 even if investment is made between April 2020 to June 2020.

How can I save my tax after 80c?

In this article, let’s take a look at the tax-saving options other than Section 80C to turn you into a smart tax saver.Section 80CCD: National Pension Scheme. … Section 80D: Payment of health insurance premium. … Section 80E: Repayment of an education loan. … Section 24: Interest payment of a home loan.More items…•

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

What is the last date for 80c investment?

July 31If you still haven’t invested to save taxes under Section 80C, you can do it now. You have 10 more days to invest and claim deduction under Section 80C of the Income Tax Act for FY 2019-20. The last date to make income tax saving investment for the financial year 2019-20 is July 31.

Is 80c removed?

Most of the commonly available deductions such as section 80C (investments made in PF, NPS etc.), 80D (payment of medical insurance premium), standard deduction of Rs 50,000 etc. have been proposed to be removed but here is one tax benefit that can still be claimed by the individuals under the proposed new tax regime.

Is PF part of 1.5 lakh investment?

PF Tax Benefit: The maximum limit of Section 80C is Rs 1.5 lakh per financial year and there are several investments, expenses including PF contributions of an employee that are eligible for tax benefit under this Section.

What is 80c exemption?

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.

How much I can save in income tax?

Section 80C of the Income Tax allows tax exemption of up to Rs. 1.5 lakhs per annum (meaning you can save up to Rs. 45,000 on tax per year). Fixed deposits, PPF, ULIP and ELSS are some of the more popular 80C investments, though there are plenty of other options too.