section 80c

Purchasing a second home involves significant tax considerations beyond the initial purchase price. Stamp duty, registration fees, and GST are upfront costs. Income tax implications vary based on whether the property is self-occupied, vacant, or rented out, with different deduction rules under old and new tax regimes. Understanding these nuances is crucial for financial planning.

Non-Resident Indians can invest in Indian real estate, including residential and commercial properties, and land for construction, under FEMA rules. While agricultural land is restricted, NRIs can purchase apartments, offices, and plots. Key documents and tax compliance are essential, with specific deductions available for interest and principal payments. Payments must follow prescribed banking channels.

Women are actively investing in India, moving beyond traditional savings. While participation in mutual funds and equities is rising, independent control over financial decisions, particularly tax planning, is still developing. Younger women show greater comfort with digital platforms and goal-based investing. This shift signifies a growing financial awareness and engagement across the nation.

Union Budget 2021: section 80c of the Income-tax Act, 1961 is one of the most popular for tax saving investments.

Union Budget 2023: section 80c is a very important deduction for individuals, because it relates to payments and investments made in life insurance, provident fund, subscription to equity debentures etc.

Soon after coming to power, the new government increased the section 80c limit under the Income Tax Act by Rs 50,000 per annum to Rs 1.5 lakh, and gave some other incentives to retail investors to save more.

Whether you are a government employee or privately employed, you can avail income tax benefits under section 80c.

ELSS funds are essentially diversified equity funds and carry the same risks.

section 80c of the Income Tax Act can reduce the gross taxable income of an individual and thereby the total tax payable.

EPF contributions offer tax benefits under section 80c, with deductions limited to Rs 1.5 lakh annually. Interest earned is tax-exempt within Rs 2.5 lakh for employees, Rs 5 lakh for government employees. Employer contributions exceeding Rs 7.5 lakh become taxable, including associated returns. EPF withdrawals before 5 years incur taxation.

Industry body Assocham has called for the need to "simplify personal taxation and reduce the number of slabs under the new (income tax) regime." In its pre-Budget 2021-22 memorandum, the Associated Chambers of Commerce and Industry of India stated that "the new slabs under the new regime of taxation are too many and complicated."

The Union Budget 2021-22 should look to double the section 80c limit to Rs 3 lakh, recommends Ficci. Budget 2021 will spell out the road map for growth in the next financial year.

The list of Sec 80C options should have simpler products chosen for their long-term benefits.

The removal of tax deduction for infra bonds means that small taxpayers may have to pay up to 4,120 more in tax this year. The worst hit will be the senior taxpayers

Realtors' apex body Credai has suggested the government to increase tax exemptions in the upcoming Budget to boost housing demand and enhance limit of deduction under section 80c of income tax for principal repayment on home loans.

An individual taxable at 30 per cent can save 45,000 if he or she claims 1.5 lakh as deduction under section 80c.

A harsh fallout of the pandemic were job losses. If you have joined the freelance economy – be it as a freelance graphic designer, interior designer, an architect, a consultant etc – the fees you get from your clients will be taxed under the head ‘Profits and Gains from Business or Profession’.

Equity-linked savings schemes (ELSS) are losing favor among investors as many switch to the new tax regime, which lacks section 80c benefits. Consequently, Q1 FY26 saw net outflows of Rs 1,616 crore from ELSS funds. With a shorter lock-in period and equity-oriented returns previously attracting investors, ELSS now experiences slower growth compared to other equity funds.

The Income Tax department is scrutinizing the discrepancies between employer-calculated and employee-claimed tax data, intensifying its scrutiny to ensure accuracy. This assessment covers various categories, including house rent allowance, medical insurance, home loan expenditures, investments under section 80c.

Budget 2024: One common ask every year is that the limit for deductions under section 80c should be hiked from Rs 1.5 lakh. This limit was last revised in the 2014-2015 Budget from Rs 1 lakh.

The Finance Minister, in the Budget 2024 speech, announced that the tax deduction limit under section 80c will remain unchanged. For the current fiscal year 2023-24 and the upcoming fiscal year 2024-25, individuals can claim tax benefits up to Rs 1.5 lakh through section 80c investments.

Maximize tax savings beyond section 80c by exploring NPS, health insurance premiums, preventive check-ups, savings account interest, and donations to approved funds under different sections with specific deduction limits.

With the financial year ending soon, many rush to maximize tax-saving investments. Among the options, Tax-Saving Fixed Deposits (FDs) offer secure returns and tax benefits under section 80c. However, these deposits have a five-year lock-in period and their interest income is taxable.

Those with taxable income at 30% can save 45,000 by claiming 1.5 lakh as deduction under section 80c and not opting for the new ‘simplified’ personal income tax regime.