Deduction Under Section 80C Explained with All in One TDS on Salary for Govt & Non Govt employees for FY 2014-15
Download All in One TDS On Salary for Govt & Non Govt Employees for Financial Year 2014-15 [ This Excel Utility can prepare at a time Govt or Non-Govt employees Tax Compute Sheet + Salary Structure + HRA Exemption Calculation + Arrears Relief Calculation + Form 10+ Form 16 Part A&B and Part B for Financial Year 2014-15]
Aggregate amount of deduction u/s 80C, 80CCC and 80CCD is restricted
to Rs.1,50,000.
Life Insurance Premium: You can get deduction by depositing or paying life insurance
premium in previous year. You must note here that premium paid on behalf of
wife/husband/child or any member of the family where assesse in an HUF. Child
includes adult children also, Thus, deduction is available in respect of
premium paid on a policy on the life of a married daughter.
Provident Fund & Public Provident Fund: You can claim
deduction under section 80C for the amount deposit in provident fund also. The
amount deposit in the name of wife/husband/child or any member of the family
where you are as an HUF is also eligible for deduction u/s 80C. The annual contribution up to Rs.1,50,000 (A.Y.2015-16) is eligible for
deduction under section 80C. You can deposit Rs. 1,50,000 (A.Y.2015-16) in PPF A/c
even if you have paid the amount in LIC, NSC,
ULIP etc. However, the deduction u/s 80C is available on the total contribution
of PPF, LIC, ULIP, etc. up to maximum of Rs.1,50,000 [Rs.1,00,000 for
A.Y.2014-15]. Interest on PPF is not treated as reinvestment for purpose
of section u/s 80C is available even if the contribution is made in the PPF
account of minor/major children or spouse.
National Saving Certificates
(NSC): You can also get deduction
under section 80C for the amount deposit in national saving certification along
with PPF/LIC/ULIP up to maximum of Rs.1,50,000 accrued during the year.
There is no TDS deduction for repayment of NSC. Interested accrued during the
year (except for the last year) shall be deemed to be reinvested and shall also
qualify for deduction u/s 80C.
Bank Term Deposit Schemes: Amount invested in bank term deposits along with
PPF/LIC/NSC/ULIP etc. up to a maximum of Rs.1,50,000 (Rs.1 lakh for
A.Y.2014-15) is also eligible for deduction under section 80C. The maturity
period for bank term deposit schemes is 5 years.
Post Office Time Deposit Schemes: You can also opt for post office time deposit to get deduction
under section 80C up to Rs.1,50,000. You must note that the deduction is
available only to the first holder.
Mutual Fund Schemes: Some of the schemes of
mutual funds are eligible for deduction u/s 80C along with other investments
give above. The income from mutual funds is also fully exempted u/s 10 (35).
Senior Citizens Saving Scheme, 2004: You can also get benefit of Senior Citizens Saving Scheme to get
deduction u/s 80C of Rs.1,50,000 [Rs.1,00,000 for A.Y.2014-15]. No TDS
deduction is required if you provide form 15H/15G (as the case may be).
NABARAD Rural Bonds: The deduction is also
available under section 80C for subscription to notified bonds issued by
National Bank for Agriculture and Rural Development.
ULIP: The deduction is also
eligibile for the amount deposit in the name of himself, his/her wife/husband
or his child, and an HUF in the name of its members to any Unit Linked
Insurance Plan of UTI.
Tuition Fees: You can claim the
deduction of paying the tuition fee of your two children. Here, you should note
that tuition fees eligible paid to any university, college, school or other educational
institution situated in India .
However, any development fees or donation or payment of similar nature shall
not be eligible for deduction.
K.V.P. :- Newly include U/s 80C the Kissan Vikas
Patra in the Finance Budget 2014 which can relief from tax max Rs.1.5 Lakh.
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