All About Section 80C, 80E, 80G - Income Tax Deduction

Let’s face it: almost everyone is in a lookout for different ways to save a sizeable amount of their hard-earned money eaten up by the tax monster. But sadly, a large part of tax payers are really unaware of the income tax deductions allowed for their income. It is important for one to properly plan their taxes in order to save a sizeable amount of their hard-earned money eaten up by the tax monster. If you too have been looking out for ways to save taxes, read on to know how Section 80C of the Indian Income Tax Act can help you save income tax.

Section 80C, 80CCD and 80CCC

Under the Section 80C, 80CCD and 80CCC of the Indian Income Tax Act, you are entitled to save up to Rs. 1.5 lakhs from your taxable income. Unfortunately, a lot of people do not really know about how to make tax savings under these sections. But be advised, no matter how much savings you are doing, you are allowed to save only Rs. 1.5 lakhs under the Section 80C of the Indian Income Tax Act.

If you are looking to make savings of Rs. 1.5 lakhs under the Section 80C of the Indian Income Tax, you will be pleased to know that the government offers a wide range of tax saving instruments to save taxes under the Section 80C. Here are just some of the many tax saving instruments that you can utilize to save taxes under the section 80C of the Indian Income Tax Act.

§     ELSS

§     ULIP

§     NPS

§     VPF and PPF

§     Sukanya samriddhhi yojana

§     Senior savings scheme

§     FDs and NSCs

§     Pension plans

§     Insurance policies

Section 80CCG

If you are looking to invest in tax saving investment schemes, you may opt for Rajiv Gandhi Equity scheme. This can help you save taxes under the Section 80CCG of the Indian Income Tax Act. Though this equity scheme is a little complicated for a non-financial expert to understand, it can help you save a sizable amount of taxes. If you are actually looking forward to take the full benefit of this scheme, do seek the help of a financial expert to help you invest wisely in the government sponsored equity scheme.

Section 80E

If you are a salaried professional, you can save taxes on any education loans that you may have undertaken. Your Education Loans are covered under Section 80E of the Indian Income Tax Act. You can avail tax deductions for education loans taken for your higher education, or the education of your spouse or your kids of whom you are the legal guardian. However, the tax deduction is allowed only on the interest repayment and not the principal amount.

 

Section 80G

If you are the one who believes in charity, then you can rest assured of saving a sizable amount of money in taxes under the section 80G of the Indian Income Tax Act. You can choose to donate money in the National Relief Fund to avail tax exemptions under the section 80G of the Indian Income Tax Act. But if you actually plan to donate in a Government authorized charity, be very careful of getting acquainted to the concerned rules of the income tax saving.

Wrapping it Up!

So there you have it – how to make sizable income tax savings. Now, go ahead put this learning into practice and use these great tax saving knowledge to ensure that your hard earned money isn’t eaten up by the tax monster. In addition to the aforementioned ways, there are a plenty of other ways to ensure huge income tax saving. Some of easiest ways are home loans, life insurance and term insurance premiums.