Income Tax Deduction under Section 80C for tax saving

Income Tax Deduction under Section 80C

There are many sections in income tax deduction under which individuals can save taxes by investing in the various tax saving options. Section 80C, Section 80D and other section 80 deductions come under the income tax deductions which allowed to claim the maximum deduction of up to Rs. 1.5 lakh from total income.

Life Insurance Premium, ELSS, Provident Fund, Sukanya Samriddhi Yojana and PPF are some of the best tax saving investment options under section 80C.  Section 80C Deductions can be claimed by any individual or HUF for tax planning or tax saving purpose.

Section 80C Deductions


Equity Linked Savings Scheme (ELSS) is one of the best tax saving options which allows the maximum tax deductions of 1.5 lakh under Section 80C of the Income Tax Act. An individual can invest in ELSS with minimum lock-in period of 3 years. The returns of ELSS depends on the various market factors and risk-taking ability of investor.

Life Insurance Premium:

Life Insurance Premium provides the tax benefits and any individual can claim maximum deduction of 1.5 lakh under section 80C. The minimum lock-in period of life Insurance policy is 2 years.

EPF (Employee Provident Fund):

Any salaried employee can get tax deduction under section 80C by contributing to EPF which is a retirement benefit scheme. An employee can not withdraw the funds from the EPF if he/she is employed in company except some emergency conditions. The rate of interest is 8.65%.

PPF (Public Provident Fund):

PPF is one of the best Section 80C deductions for a long-term investment. Any salaried employee or non-salaried can choose to invest in PPF (Public Provident Fund). The maximum lock-in period of PPF is 15 years.

ULIP (Unit Linked Insurance Plan):

Any individual can claim tax deduction benefits by investing in ULIPs. An investor can invest in life insurance and stock market through ULIPs. The rate of interest in ULIPs depends on the market factors.

Sukanya Samriddhi Scheme:

Sukanya Samriddhi Scheme is the tax saving option that allows the maximum deduction of up to Rs. 1.5 lakh. The maturity period of Sukanya Samriddhi Scheme is 21 Years and Rate of interest is 8.4%.

Senior Citizens Savings Scheme:

Any individual who is over 60 years old is eligible for this tax saving option. The maturity period of Senior Citizens Savings Scheme is 5 years and rate of interest is 8.6%. A maximum of 1.5 lakh can be claimed for tax deduction under Section 80C by investing in this scheme.


NSC (National Savings Certificate):

An investment of up to Rs. 1.5 lakh is allowed for tax deduction under Section 80C in NSC which is postal department scheme. The maturity period of NSC is 5 years and the rate of interest is 7.9% compounded annually.

You can start plan your investment before March and decide the best tax saving options suitable for you. You can contact us here for any expert advice: Best tax saving investment option.

Goods and Services tax:Understand CGST, SGST and IGST

Goods and Services Tax

Goods and Services Tax is an indirect tax levied on all goods and services in whole nation.There are three types of Goods and Services Tax: CGST (Central Goods and Services Tax), SGST (state goods and services tax) and IGST (integrated goods and services tax). Before GST there were different taxes like VAT, Central excise, Service Tax were being levied by the government o:n consumers which replaced by GST and makes India “one nation with one tax”. There are different GST rates for every products and services levied by the Government.

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Income Tax Notices and Intimations

Income Tax Notice and sections

If you have not filed your income tax returns this year then there is a chance that you will be served income tax notice by the Income Tax Department. It is very important to reply the notice with valid reason and details of proof for not filing ITR.

If you are doing high value transactions then you must file your ITR as income tax department get this information through your Aadhaar or PAN card. These high value transactions can be credit card payment of above Rs. 2 lakhs, depositing huge amount in your bank account, purchasing luxury items, buying movable or immovable property, investing in mutual funds.

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Latest updates on GST rates and GST filing

GST Rates

The GST council has slashed the GST rates of 178 items of daily use from tax bracket of 28% to 18% which will come in to effect by November 15th.Good and Services Tax council took a major step to simplify the process of GST returns filing during the meeting held last week. Now only 50 items left in the highest GST rates slab. The recommendations made by the GST council will reduce the compliance burden on businesses and ease the GST returns filing procedure for companies.

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Understand Defective Return Notice under Section 139 (9)

Defective Return Notice

If you get the Notice under Section 139 (9) then it is about Defective Return Notice. You can get this Income Tax Notice under Section 139 (9) due to various reasons and mistakes done while filing your income tax returns. There is no need to panic about this notice as you just need to understand the reason behind it which you will get through the mail by Income Tax Department.

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Income Tax Deductions for AY 2017-18

Income Tax Deductions

Income Tax Deductions under Section 80C,80D are the most common options for the taxpayers to reduce the tax burden. There are many income tax deductions rules as per income tax act which taxpayers should know to increase their tax savings while filing income tax return.

Important Income Tax Deductions for AY 2017-18: 80C Deductions,80D Deductions.

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Income Tax Notice and Sections

Income Tax Notice and Sections

There are some sections of the Income Tax Act under which you can get the income tax notice.

No need to panic if you receive the income tax notice instead understand the reason of getting the income tax notice and its implications.

Section 139(9):

There are some cases in which you will get a notice under section 139(9):

  • Wrong ITR form while filing income tax returns.
  • Mismatch in the name on the form and PAN card.
  • Paid taxes but not mentioned income.
  • Not paid the whole tax due.
  • Claimed a refund for deducted tax but not mentioned the relevant income.

Time to respond: Within 15 days of date of intimation by assessing officer.

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Section 245:

In Section 245, you will get this notice or intimation letter if you have claimed a refund in some assessment year, but there is also some outstanding tax to be paid by you.

Time to respond: In the specified duration, as per the notice by the assessing officer.

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If you get notice under section 143(2), it means your returns has been selected for scrutiny by Assessing officer which means the tax filed return by you was incomplete in document or not proper.

This can be of three types:

  • Limited purpose Scrutiny.
  • Complete Scrutiny.
  • Manual Scrutiny.

Time limit to respond: The assessee will have to appear in person before the officer on the date specified in the notice.

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Section 143(1):

This is an intimation about the returns filed by you.

Time limit to respond: If tax is due then you will have to pay it in within 30 days. If there is no discrepancy then you no need to worry about this.

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Section 143(1A):

This income tax notice under section 134(1) is sent only if there is any discrepancy in the income mentioned in the return and form 15, Section 80C deductions and Form 16AS, then verification will be sought.

Time limit to respond: Within 30 days of issue of intimation.

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Income Tax Notice-Understand Section 143

Income Tax Notice

As we all know that it is very important to file your income tax returns on time but filing ITR correctly is also very important. If there will be any error in income tax return filed by you then you can expect income tax notice.

In that case you no need to panic about the income tax notice and just need to understand the various sections under which you have received it.

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Last date for filing of Income Tax Returns is 5th Aug(Saturday)

free income tax e-filing in India

The Income Tax Department had recently extended the deadline to 5th Aug for filing the Income Tax Returns.

There are two ways to file the income tax returns online. In one method individual can download the applicable form from the Income Tax e-filing website, fill the form offline, save it, generate the XML file and then upload it.

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New Deadline for filing Income Tax Returns is 5th Aug 2017

e-filing income tax returns in India

The last date for filing of income tax returns for the financial year 2016-17 is 5th Aug which is extended today by the Income Tax Department.

Every individual whose gross total income exceeds the taxable income must file an Income Tax Returns by 5th Aug.

e-filing income tax returns

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