Understanding the nuances of tax deductions can be a daunting task for many. But many taxpayers in India make a popular choice—the tax deduction they avail is the 80C deduction. This section of the Income Tax Act allows individuals and Hindu Undivided Families (HUFs) to reduce their taxable income by making certain investments or expenditures.
80C Subsections: What to Know about 80C Deduction?
The 80C deduction (
required documents) is not just a single provision but comprises several subsections. Each of the 80C subsections pertains to a specific type of investment or expenditure. For instance,
- Section 80CCC pertains to deductions for premiums paid towards certain pension funds.
- Section 80CCD allows deductions for contributions to the National Pension Scheme (NPS) or Atal Pension Yojana.
Understanding these 80C subsections can help taxpayers make informed investment decisions and claim the maximum possible deductions.
Also Read: ITR filing last date for FY 2023-24 (AY 2024-25): Due dates for income tax returns filing, TDS, advance tax payments
Investments Eligible Under 80C
Numerous investment options qualify for deductions under section 80C. These investments under 80C offer a variety of returns and have different lock-in periods, allowing taxpayers to choose the options that best suit their financial goals and risk tolerance. Here"s a summary of some of these options:
