Section 80C is a legal method to save tax! Read on to know, “HOW?”
Around the world, taxation has a poor reputation for good reasons. Many people fear taxes, while others wonder how to avoid them.
Section 80C of the Income tax Act allows maximum deduction of Rs 1.5 lakh per year.
Individuals and HUFs can claim this deduction through:
1. Tax saving investments
2. Qualifying expenses
➣ ULIPs - Unit-Linked Insurance Plans
➣ ELSS - Equity-Linked Savings Scheme
➣ PPF - Public Provident Fund
➣ EPF - Employee Provident Fund
➣ NSC - National Savings Certificates
➣ Fixed Deposits
➣ Senior Citizens Savings Scheme
➣ National Pension System
➣ Sukanya Samriddhi Yojana
➣ Life Insurance Policies Premium Payment
Life Insurance Policy One of the Most Opted Tax-saving Investments under Section 80C
To know “why?”
➣ You can build wealth for the future through tax-deductible investments like ULIPs.
➣ You can protect yourself and your loved ones in case of unforeseen events through term plans.
➣ You can pay off your debts, such as home loans and education loans through guaranteed plans.
Here’s an Example
In scenario -1, a 30-year-old male does NOT buy a tax-saving life insurance policy.
In scenario -2, a 30-year-old male buys a tax-saving life insurance policy.