What Is 80c Limit?

What is 80c in income tax 2020 21?

Income Tax Deductions under New Tax Regime FY 2020-21 The most commonly claimed deductions under section 80C will go.

Section 80C deductions claimed for provident fund contributions, life insurance premium, school tuition fee for children and various specified investments such as ELSS, NPS, PPF can not be availed..

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.

Which is the best 80c investment?

Best Tax-Saving Investments Under Section 80CInvestmentReturnsLock-in PeriodNational Pension Scheme (NPS)12%-14%Till RetirementUnit Linked Insurance Plan (ULIP)Returns vary from plan to plan5 yearsPublic Provident Fund (PPF)7%-8%15 yearsSukanya Samriddhi Yojana8.5%N/A5 more rows•Oct 14, 2020

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 tax slab for 2020 21?

Income tax slab rate applicable for New Tax regime – FY 2020-21.Income Tax SlabNew Regime Income Tax Slab Rates for FY 2020-21 (Applicable for All Individuals & HUF)Rs. 5.00 lakhs- Rs 7.5 Lakhs10%Rs 7.5 lakhs – Rs 10.00 Lakhs15%Rs 10.00 lakhs – Rs. 12.50 Lakhs20%Rs. 12.5 lakhs- Rs. 15.00 Lakhs25%4 more rows•Dec 17, 2020

How can I save my income tax 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.

What are covered under 80c?

What are the investments under 80C? PPF, NSC, NPS, Tax saver FDs, Post Office Term Deposit, ELSS, ULIP, Senior Citizens Savings Scheme, Sukanya Samridhi Account. Here is a complete guide to all the deductions allowed under Section 80C.

What is 80c and 80d?

Section 80C and 80D of Income-tax Act entitles specified taxpayers to claim deductions for the entire amount paid to the insurance company for specified insurance schemes.

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.

Is FD covered under 80c?

Taxation on FD Earnings You can take advantage of the income tax deduction provision under Section 80C of the Income Tax Act by investing up to Rs. 1.5 lakh in a tax-saver fixed deposit account.

What is the 80c limit for 2019 20?

Rs 1.5 lakhDeductions on Investments Section 80C : You can claim a deduction of Rs 1.5 lakh your total income under section 80C. In simple terms, you can reduce up to Rs 1,50,000 from your total taxable income, and it is available for individuals and HUFs.