Friday, November 14, 2008

 

Income Tax Rule - 80C

80c - Income Tax Rule
One of the most popular saving investment by invester under the deductive rule:


SectionInvestmentsAmountParticulars
80CNSC, Notified Bank Deposits, Post Office Time Deposits,EPF, PPF, ELSS, LICCannot exceed Rs.1 lakhPayment has to be made before 31 March 2008
80CCCPension Plans of life insureresCannot exceed Rs.1 lakhPayment has to be made before 31 March 2008
80DMedical Insurance Policy-Any member of Family (HUF)For Senior Citizens up to 20,000 Others Rs.15,000Paymet should be made through a Cheque
80DDMedical Treatment for Disability DependantRs 50,000 for a person with disability Rs 75,000 for severe disabilityMedical Certificate should be made
80DDBMedical Treatment for Specified Diseases (Cancer,AIDS,Neurological etc.)Rs.40,000(Age of below 65) Rs.60,000(Age of 65 and above)Certificate in Form No.10-I to be submitted
80EPayment of Interest on Loan for Higher StudiesDeduction available on the total interest amount of Education LoanOnly for Eight Immedaitely Succeeding assessment years
80GDonations to certain funds and charity50 or 100 percent deduction on the entire donated amountNil
80GGRent paid for Residential purposeExcess of actual rent paid over 10 percent of GTI or 25 percent of GTI or Rs.2,000 per month, whichever is the lowestShould not be getting House Rent Allowance
80UExpenses incurred on self, if disabledRs 50,000 for a person with disability Rs 75,000 for severe disabilityMedical Certificate should be made

Comments:
Do not blindly invest money with the the first agent that you might come across. You might end up making mistakes. A lot of people end up buying insurance policies with minimal insurance coverage or putting money in instruments where they cannot access the money when they need it.
c. Do not make last minute decisions just because your payroll department has reminded you that the internal deadline for submitting proofs is approaching. Tax planning involves planning in advance to avoid the last minute scramble
 
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