Paying the tax as per the capacity to pay it, is the sole responsibility of all citizens. However, many people misunderstand the tax system and find it hard to pay tax out of their pockets. This is because many people consider paying a tax an expensive thing that reduces an individual's income. However, what comes to rescue is the tax exemption, that helps people to save tax on their earnings. There are many sections in the income tax act that provide various tax exemptions. One such section is section 80 C of the income tax act. Section 80 C provides the following tax exemption, as listed below:
Tax benefit on provident funds: Section 80 C provides exemptions up to Rs 1.5 lakhs on all PPFs, VPs, and EPFs accounts.
Tax benefit on saving schemes: Section 80C provides tax benefits up to Rs 1.5 lakhs on various savings and investment schemes that are regulated by the Government. These include the sukanya samriddhi saving scheme, National pension system, national saving certificate, and the senior citizens saving scheme.
Tax exemption on tuition fee: Section 80 C provides a tax exemption on education expenses like tuition fee made on children's education. Benefits up to Rs 1.5 lakhs can be availed as per section 80C.
Tax benefits on home loans: section 80C also provides various tax benefits on home loans. Exemptions up to Rs 1.5 lakhs can be made on principal amount paid on home loans. Also, exemptions can also be made on stamp duty and registration charges made on home loans.
Exemption on life insurance cover: The section 80C also provides tax benefits on life insurance cover, up to Rs 1.5 lakhs.
Thus, to save tax, it is better to know all benefits associated with section 80C of the income tax act. This will help one to save their hard-earned money which can be utilized on other important expenses.
Read more: Tax Benefits Under Section 80C to 80U.
Tax benefit on provident funds: Section 80 C provides exemptions up to Rs 1.5 lakhs on all PPFs, VPs, and EPFs accounts.
Tax benefit on saving schemes: Section 80C provides tax benefits up to Rs 1.5 lakhs on various savings and investment schemes that are regulated by the Government. These include the sukanya samriddhi saving scheme, National pension system, national saving certificate, and the senior citizens saving scheme.
Tax exemption on tuition fee: Section 80 C provides a tax exemption on education expenses like tuition fee made on children's education. Benefits up to Rs 1.5 lakhs can be availed as per section 80C.
Tax benefits on home loans: section 80C also provides various tax benefits on home loans. Exemptions up to Rs 1.5 lakhs can be made on principal amount paid on home loans. Also, exemptions can also be made on stamp duty and registration charges made on home loans.
Exemption on life insurance cover: The section 80C also provides tax benefits on life insurance cover, up to Rs 1.5 lakhs.
Thus, to save tax, it is better to know all benefits associated with section 80C of the income tax act. This will help one to save their hard-earned money which can be utilized on other important expenses.
Read more: Tax Benefits Under Section 80C to 80U.
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