ITR Filing FY23-24: Claim Tax Deductions under Section 80C up to Rs. 1.5 Lakh
Income Tax Return (ITR) filing for the financial year 2023-24 offers individuals an opportunity to reduce their tax liability through deductions under Section 80C of the Income-tax Act, 1961. This provision allows taxpayers to claim deductions on specified investments and expenditures, thereby lowering their taxable income.
Eligibility for Section 80C Deductions:
Section 80C deductions are applicable to:
- Resident Individuals
- Non-Resident Indians (NRIs)
- Hindu Undivided Families (HUFs)
It’s important to note that companies, LLPs, and partnership firms are not eligible to claim deductions under Section 80C.
Maximum Limit for Section 80C Deductions:
Taxpayers can claim a maximum deduction of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. This deduction can significantly reduce the amount of taxable income, leading to a lower tax liability.
Investments Eligible for Section 80C Deductions:
Various investments and expenditures qualify for deductions under Section 80C, including:
- Life Insurance Premiums: Premiums paid for life insurance policies qualify for deduction.
- Employee Provident Fund (EPF): Contributions to EPF are eligible, and interest earned on EPF is tax-free after completing five years of continuous service.
- Public Provident Fund (PPF): Contributions made to PPF accounts are eligible for deduction.
- Equity Linked Savings Scheme (ELSS): Investments in ELSS mutual funds qualify for deduction.
- Senior Citizens Savings Scheme (SCSS): Investments in SCSS are eligible.
- National Savings Certificate (NSC): Investments in NSC are eligible for deduction.
- Sukanya Samriddhi Account (SSA): Investments made in SSA are eligible.
- Tax-Saving Fixed Deposits: Fixed deposits with a lock-in period of five years are eligible for deduction.
- Tuition Fees: Tuition fees paid for children’s education qualify for deduction.
How to Claim Section 80C Deductions:
Taxpayers can claim Section 80C deductions by including the eligible investments and expenditures while filing their Income Tax Return (ITR) for the assessment year 2024-25. Ensure all necessary documents and proofs are retained to substantiate the claims made.
By leveraging Section 80C deductions, taxpayers can optimize their tax planning and maximize savings. It’s advisable to consult with a tax advisor or refer to the official guidelines for precise details and updates regarding Section 80C deductions.
For further information and detailed guidelines, please refer to the official notifications and updates from the Income Tax Department or consult a qualified tax professional.