Thread by @AnkitGalaStocks

A Thread 🧵80 C Deduction of Income Tax.

Must read for everyone.

A Simple way to to save tax upto Rs. 46,800 each year!

(RT to maximize reach.)

@caniravkaria @CAPratik_INDIAN views welcome 🙏

#IncomeTax #Tax #ELSS #TaxSaving #Investing #TaxPlanning

When the month of March starts or is about to end suddenly everyone remembers one thing #TaxSaving ...

This is where #TaxDeductions come into picture.

Deductions allowed under the #IncomeTax act help you reduce your taxable income.

Deduction under Section 80 C is a popular tax deduction section which allows you to claim a deduction of Rs 1.5 lakh on your total income.

By completely utilizing this deduction limit, a person can save tax upto Rs. 46,800 each year! (For person
falling in tax bracket of 30%).

A glimpse of 80 C Deduction of Income Tax 👇👇👇

Certain types of #investments and #payments are eligible for 80 C deduction of #IncomeTax.

In this Thread I shall describe them.

For details you can read my book 📗 "Investment Planning" co-authored by @KhushbooAGala

1⃣ Investment in #ELSS Fund or Tax Saving Mutual Fund

It is considered as the best tax saving option. Has a lowest lock-in period of 3 years and has historically higher returns than FD, #PPF or #NPS.

#TaxSaving #IncomeTax #IncomeTaxIndia

2⃣ Investments in Tax Saving FDs

Tax-saving FDs are like regular fixed deposits but come with a lock-in period of 5 years. They carry comparatively lower risk. Interest earned is taxable.

#TaxSaving #IncomeTax #IncomeTaxIndia

3⃣ Investments in Public Provident Fund (PPF)

#PPF are long term investments backed by government of India. PPF account have lock-in period of 15 years. Partial withdrawals are allowed after 7 years. Interest earned is tax-free.

#TaxSaving #IncomeTax #IncomeTaxIndia

4⃣ Investments in Employee Provident Fund (EPF)

#EPF is a retirement benefit scheme that is available to all salaried employees. This amounts to 12% of basic salary + DA, that is deducted by an employer and deposited in the EPF or other recognized provident funds.

#TaxSaving

5⃣ Investments in NPS (National Pension System)

#NPS is a pension scheme that has been started by the Indian Government to allow the unorganised sector and working professionals to have a pension after retirement.

#TaxSaving #IncomeTax #IncomeTaxIndia

6⃣ Investments in Unit linked Insurance Plans (ULIP)

#ULIPs are a mix of insurance and investment. A part of invested amount in ULIPs is used to provide insurance and rest is invested in the stock markets.

Investment and withdrawals & maturity amount are tax-free.

#TaxSaving

7⃣ Investment in Post Office Savings Schemes

It includes investments in National Saving Certificate (NSC), Kisan Vikas Patra (KVP), Post Office Tax Savings Deposits, Senion Citizens Savings Scheme (SCSS), etc.

#TaxSaving #IncomeTax #IncomeTaxIndia #InvestentPlanning

8⃣ Investments in Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is a popular schemes by the Government of India aimed at betterment of girl child in the country. Parents/guardians can open an account in name of a girl child till she attains age of 10 years.

#TaxSaving

9⃣ Investment in Infrastructure Bonds

These are government-approved bonds that are issued by companies like India Infrastructure Finance Company and Infrastructure Development Finance Company.

#TaxSaving #TaxPlanning #IncomeTax #IncomeTaxIndia

🔟 Payments of LIC Premium

Annual premium paid for life insurance in name of taxpayer or taxpayer's wife & children is an eligible tax-saving payment under Section 80C. Deduction is valid only if premium is less than 10% of the sum assured.

#TaxSaving #TaxPlanning #IncomeTax

1⃣1⃣ Payments of Children's Tuition Fees

Tuition fee paid for education of two children is eligible for tax deduction under Section 80C. Fee can be paid to any school, college, university or educational institute situated in India for a full-time course only.

#TaxSaving

1⃣2⃣ Repayment of Home Loan

Repayment of principal of a loan taken to buy or construct a residential property is eligible for tax deductions under Section 80C. This deduction is also applicable on stamp duty, registration fees and transfer expenses.

#TaxSaving #TaxPlaning

There are various other common tax deductions whose benefit every person can take and legally and ethically save taxes.

If you liked this 🧵 on #TaxSaving please share it with all your friends.

Forgot to add an important advice and a disclaimer.

I am not a qualified C.A. This thread is to provide only basic idea about common 80C deductions.

For more details better to contact your C. A and discuss about various #TaxDeductions whose benefit you can claim.

As promised in DM to many people, here comes a thread🧵on all common #TaxDeductions including #80C

👇👇👇

https://twitter.com/AnkitGalaStocks/status/1375735040160661504?s=20