Normally, taxpayee did not aware about deductions under section 80C properly. The section 80C comes from the assessment year 2006-07 onwards. Section 80C provides deduction in respect of certain expenditure/investments (which are specified in this section) paid or deposited by the assessee in the previous year.
Deduction under this section is available only to individual & Hindu Undivided Family.
What is Gross Qualifying Amount ?
The following payments/investments qualify for deduction under this section. The total amount of investments made during the Previous Year under these below mentioned schemes is known as Gross Qualifying Amount (GQA):
Deduction under this section is available only to individual & Hindu Undivided Family.
What is Gross Qualifying Amount ?
The following payments/investments qualify for deduction under this section. The total amount of investments made during the Previous Year under these below mentioned schemes is known as Gross Qualifying Amount (GQA):
- Life Insurance premium paid on a policy taken on his own life, life of the spouse or any child (child may be dependent/ independent ). In the case of a Hindu undivided family, policy may be taken on the life of any member of the family. The premium paid should be maximum of 20% of sum assured.
- Any sum deducted from salary payable to a Government employee for the 168 purpose of securing him a deferred annuity (subject to a maximum of 20% of salary).
- Contribution towards statutory provident fund and recognized provident fund.
- Contribution towards 15 year public provident fund (maximum of Rs 70,000).
- Contribution towards an approved superannuation fund.
- Subscription to National Savings Certificates, VIII Issue .
- Contribution for participating in the Unit-Linked Insurance Plan (ULIP) of Unit Trust of India.
- Contribution for participating in the unit-linked insurance plan (ULIP) of LIC Mutual Fund (i.e. Dhanraksha plan of LIC Mutual Fund).
- Payment for notified annuity plan of LIC (i.e. Jeevan Dhara, Jeevan Akshay New Jeevan Dhara ,etc ) or any other insurer.
- Subscription towards notified units of Mutual Fund or UTI.
- Contribution to notified pension fund set up by Mutual Fund or UTI.
- Any sum paid (including accrued interest) as subscription to Home Loan Account Scheme of the National Housing Bank.
- Any sum paid as tuition fees to any university/college/educational institution in India for full time education.
What is Amount of deduction ?
We add the amounts invested/spent in above mentioned schemes and this amount is known as Gross qualifying amount. The amount deductible is -
We add the amounts invested/spent in above mentioned schemes and this amount is known as Gross qualifying amount. The amount deductible is -
- Gross qualifying amount; or
- Rs 1,00,000
Whichever is less
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