80C Deduction A.Y. 2018-19 (F.Y 2017-18) With Automated All in One TDS on Salary for Govt and Non-Govt Employees for F.Y.207-18

Section 80C Deduction for AY 2018-19 (FY 2017-18) is Rs.1,50,000: Section 80C lists down various options where an Individual can invest and claim exemption from income. For A.Y. 2018-19, the deduction under section 80C is limited at Rs.1,50,000. The deduction under section 80C is allowed from your Gross Total Income. The deduction is allowed for various investments, expenses, and payments.  Section 80C Deduction for A.Y. 2018-19 (F.Y 2017-18) is allowed to Individuals as well as Hindu Undivided Family business.

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Details of 80C Deduction for A.Y. 2018-19 (F.Y 2017-18)

80C Deduction Max Allowable	Rs.1,50,000
80CCD(1B) Additional Exemption Max Allowable	Rs. 50,000

Life Insurance Premiums: Section 80C Deduction

Life insurance premium on the life of himself, spouse and children or paid by an HUF for any member of his family. The insurance premium is deductible subject to maximum ceiling given below.

Provident Fund, Public Provident Fund and other superannuation funds: Section 80C Deduction

Contributing to recognized superannuation fund like Provident fund, Public provident fund, and Mutual funds are eligible for deductions under section 80C.

Usually, the employer invests in such superannuation funds by deducting the investment amount from salary. ELSS constitute a type of Mutual fund which is sold with a lock in period of 3 years and returns obtained from the ELSS scheme are tax-free.

Any premium paid towards any annuity plan, whether deferred or immediate will give tax relief in that financial year.

Investments in Infrastructure public Company: Section 80C Deduction

Amount invested in deposit scheme of public company engaged in infrastructure facility or approved mutual fund

Bank Fixed Deposits: Section 80C Deduction

Bank fixed deposits which are deductible under section 80C are regular fixed deposits with interest being compounded quarterly with a lock in period of 5 years.

National Savings Certificates (NSCs) : Section 80C Deduction

Investments in National Savings Certificate are also deductible under this section and these investments are available from the Indian postal services or post offices.

Deposits in various types of accounts: Section 80C Deduction

Any sum deposited in an account under the senior citizen Saving scheme, sum deposited as 5 years time deposit in an account under the post office time deposit, sum deposited in Sukanya Samriddi Account are all eligible for deduction under this section.

Tuition fee: Section 80C Deduction

An Individual can claim deductions on children’s tuition fees only for two children and that too for the educational institutions situated in India only.

1.      Subscriptions to notified bonds of NABARD

2.      Unit Linked Insurance Plans

3.      Repayment of principal amount of loan taken for purchase/construction of house property

The deduction with respect to Home loan repayment can be claimed only if the loan has been taken from specified financial institutions or entities like your employer a public limited company, central or state government, or board, corporation, the university established by law.

In Computing the total income of an individual or Hindu Undivided family, the above contributions, expenses, and investments shall be made available for deduction u/s 80c of the Income Tax Act 1961 capped up to Rs. 1,50,000/- . The legislator’s intention behind the section 80C is to boost investments and savings among the Tax Payers

New Pension Fund : Section 80CCD(1B) Deduction

An additional exemption can allow Max Rs. 50,000/- in addition to U/s 80C ( 1.5 Lakh + 50 thousand)