What is the tax deduction combined under sections 80C, 80CCC and 80CCD after introducing a new budget in India?
Section 80C, 80CCC and 80CCD are great tax saving options. These sections are highly beneficial in saving tax up to 1.5 lakh by making an investment in different options. A tax payer needs to be aware of income tax deductions options. One of the main benefits of tax deductions under section 80C, 80CCC and 80CCD is that it will reduce the tax outgo as well as taxable income.
Here’s a list of the type of taxes that’ll help you in tax deductions. These include:
Deduction of tax under section 80C
This section helps to claim tax deductions up to Rs. 1, 50,000. Right from tax saving instruments to investments, a tax payer will have a lot of deductions. There are many investments that’ll qualify a person for income tax deductions. Some of the investments include health insurance, PPF, EPF, children’s tuition fees, housing, post office fixed deposit and many more.
Deduction of tax under section 80CCC
Under this section, HUF and individuals are eligible to get tax deductions. Some of the important points of this section are:
- The amount of pension which is received is taxable
- After the surrender of the plan, the amount that has been received is taxable.
Deduction of tax under section 80CCD
Income tax deductions under section 80CCD mainly deal with two government pension schemes that are Atal Pension Yojana and National Pension Scheme (NPS). There are different parts of this section. Let’s have a close look at each of them:
- Section 80CCD (1): This section is ideal for deductions for self-employed, employer and employees of the central
- Section 80CCD (2): In this section, the employer’s contribution will be towards NPS.
- Section 80CCD (1B): With this section, the tax benefit of Rs. 50,000 can be made for investments made in the NPS.
So, do keep these sections in mind to being aware of ITR. As a smart customer, it has become essential to keep these things in the mind.