Which of the following payments is not eligible for deduction under section 80C?

What is 80C 80CCC and 80CCD?

Sections 80CCC and 80CCD provide deductions for investments in pension schemes. The combined maximum deduction allowed under Sections 80C, 80CCC, and 80CCD(1) is ₹1.5 lakh. However, you can claim an additional deduction of ₹50,000 under Section 80CCD(1B) for contributions made to the National Pension Scheme (NPS).

What expenses qualify for 80C deduction?

The premiums paid for a life insurance policy qualify for deductions under Section 80C of The Income Tax Act, 1961. This deduction is applicable to all types of life insurance policies, including term plans, Unit Linked Insurance Plans (ULIPs), endowment plans, guaranteed income plans and more.

Can I claim 80C for home loan principal?

Yes, you can claim both Section 80C deductions on home loan principal and Section 80EEA deductions on home loan interest payments simultaneously, provided you meet the eligibility criteria for both.

What is the new rule of 80C?

Section 80C of the Income Tax Act allows deductions of up to ₹1.5 lakh from taxable income for specified investments and expenses. Key deductions under this section include: Employee Provident Fund (EPF) Public Provident Fund (PPF)

What are the deductions apart from 80C?

Section 80D - Health insurance premiums

If you invest in health insurance, you can get a deduction up to ₹ 25,000 under Section 80D for yourself and your family (₹ 50,000 if the age of insured is 60 years or above) and up to ₹ 25,000 (₹ 50,000 if the age of insured is 60 years or above) for your parents.

Can I deduct medical expenses?

If you're itemizing deductions, the IRS generally allows you a medical expenses deduction if you have unreimbursed expenses that are more than 7.5% of your Adjusted Gross Income. You can deduct the cost of care from several types of practitioners at various stages of care.

Can NRI claim deduction US 80C?

Most of the deductions under Section 80 are also available to NRIs. For FY 2023-24, a maximum deduction of up to Rs 1.5 lakh is allowed under Section 80C from gross total income for an individual.

Who is not eligible to deduct tax deducted at source?

Individuals or Hindu Undivided Families (HUFs) not carrying on business/profession or whose turnover is below the audit limit (₹1 crore for business / ₹50 lakh for profession) are not required to deduct TDS, except under specific sections.

What qualifies as a tax deduction?

Some of the more common deductions include those for mortgage interest, retirement plan contributions, HSA contributions, student loan interest, charitable contributions, medical and dental expenses, gambling losses, and state and local taxes.

What deductions can I claim on my tax return?

• Deductions you can claim.
• How to claim deductions.
• Work-related deductions.
• Memberships, accreditations, fees and commissions.
• Meals, entertainment and functions.
• Gifts and donations.
• Investments, insurance and super.
• Cost of managing tax affairs.

Can I claim both 80C and 80EE?

It is possible to claim Home Loan tax deductions under both Section 80C and 80EE of the Income Tax Act, 1961.

Who is eligible for 80EE and 80EEA?

If you took a home loan between April 1, 2016 - March 31, 2017, and meet the eligibility criteria, you qualify for Section 80EE. However, if your loan was sanctioned between April 1, 2019 - March 31, 2022, and your property's stamp duty value is ₹45 lakh or less, you can claim Section 80EEA.

What is the maximum tax exemption for a home loan?

Under Section 80C of the IT Act, you can claim tax deductions on the principal amount you repay to your lender. This deduction is also applicable to the registration and stamp duty charges of your home. The maximum housing loan tax exemption under Section 80C is Rs. 1.5 lakhs in a financial year.

What deductions are allowed in 80C?

Following are some of the 80C deduction options available as per the Income Tax Act, 1961:

• Life Insurance Premium.
• Public Provident Fund (PPF)
• Employees Provident Fund (EPF)
• Equity Linked Savings Scheme (ELSS)
• Unit Linked Insurance Plan (ULIP)
• Tax Saver Fixed Deposits.
• National Pension Scheme (NPS)

Which 80C is best?

Top tax* saving investment options under section 80C

• Equity Linked Savings Scheme (ELSS) ...
• National Pension Scheme (NPS) Tier-I. ...
• Public Provident Fund (PPF) ...
• Employee Provident Fund (EPF) ...
• Fixed Deposits. ...
• Sukanya Samriddhi Yojana (SSY) ...
• Unit-Linked Insurance Plan (ULIP)

How to claim 80C deduction in ITR?

These deductions are claimed in Part C of the third tab of 'Computation of Income and Tax'. If you are filing ITR-1 online, then some of these details get auto-populated from the details provided in Form 24Q, which is filled by your employer.

Can I claim NPS in both 80C and 80CCD?

Is 80CCD included in 80C? No. Section 80C pertains to deductions that can be claimed for certain investments while Section 80CCD pertains specifically to NPS and APY deductions. However, the total amount of deductions that can be claimed is ₹ 1,50,000 for both sections combined.

Is PPF under 80C or 80CCC?

Is Section 80CCC applicable to PPF? No, Section 80CCC specifically applies to contributions made to eligible pension funds from taxable income. However, investments in schemes like PPF, LIC policies, Mediclaim, and other insurance plans fall under the broader umbrella of deductions under Section 80C.

Can I claim both 80C and 80D?

3. Can I claim deduction under both Section 80D and Section 80C? Yes, you can claim a deduction of up to ₹ 1.5 lakh under Section 80C^ and of upto ₹ 1 lakh under Section 80D^ of the Income Tax Act, 1961 in a single financial year.