What is the 80C limit for 2020-21?
Rs 1,50,000
Income Tax Deductions in India
| Sections | Income Tax Deduction for FY 2020-21 (AY 2021-22) | Limit for FY 2020-21 (AY 2021-22) |
|---|---|---|
| Section 80C | Investing into very common and popular investment options like LIC, PPF, Sukanya Samriddhi Account, Mutual Funds, FD etc | Upto Rs 1,50,000 |
| Section 80CCC | Investment in Pension Funds |
Can I claim 80C under new tax regime?
The deduction under 80C can be claimed only if an individual opts for the old/existing tax regime in a financial year. If he/she opts for the new concessional tax regime, then he/she will not be eligible to claim these deductions.
What is the slab for 80C?
For section 80C- The amount of eligible investment or expenditure as specified is fully allowed for deduction subject to the limit of Rs 1.5 lakh. The limit of Rs 1.5 lakh deduction of Section 80C includes 80CCC (contribution towards pension plan) and 80CCD (1), 80CCD (1b) and 80CCD (2).
Is PF included in 1.5 lakh investment?
An employee’s contribution to the Employee Provident Fund (EPF) account also earns a tax break under Section 80C of up to Rs 1.5 lakh. This amounts to 12% of salary that is deducted by an employer and deposited in the EPF or other recognised provident funds. The current interest rate on the EPF is 8.5% p.a.
What is basic exemption limit?
Therefore, under the new tax regime, basic exemption limit will remain Rs 2.5 lakh for all taxpayers.” Do keep in mind that only individuals having no business income in a financial year are eligible to choose between both the tax regimes every year..
Is PF exempted in new tax regime?
As announced in the Budget 2021, if deposits in Employees’ Provident Fund (EPF) and Voluntary Provident Fund (VPF) by an employee exceed Rs 2.5 lakh in a financial year, then the interest earned on the contributions exceeding Rs 2.5 lakh will be taxable in the hands of an employee.
What is Npscra?
Central Recordkeeping Agency carries operations as directed by PFRDA. Presently, NSDL e-Governance Infrastructure Limited and KFin Technologies Private Limited have been appointed as Central Recordkeeping Agencies (CRAs) for National Pension System (NPS) by PFRDA.
What’s the maximum deduction under Section 80C in India?
80C Limits The maximum limit for tax saving under Section 80C is Rs 1.5 lakh. There is no minimum limit. 80C Schemes
Which is the limit for tax exemption under 80C?
Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80CCC of the Income-Tax Act. the Union Budget, 2014-15. There have been demands from bankers and insurers to hike the tax exemption limit from Rs 1 lakh per annum to encourage household savings.
Which is one lakh rupees in section 80cce?
In section 80CCE of the Income-tax Act, for the words “one lakh rupees”, the words “one hundred and fifty thousand rupees” shall be substituted with effect from the 1st day of April, 2015. Kindly Refer to Privacy Policy & Complete Terms of Use and Disclaimer. last year salary difference received current year how to calculate tax??
How is gross income reduced under Section 80C?
The amount you claim under this section is reduced from your gross total income for the purposes of computing income tax. For example, if your gross total income is Rs 10 lakh and you have claimed a deduction of Rs 1.5 lakh under Section 80C, your taxable income becomes Rs 8.5 lakh.