Sec 80 of Income Tax Act, 1961: Carry forward and set off of losses in case of certain companies
The Income Tax Act of 1961's Section 80 enables taxpayers to claim tax exemptions and reduce their taxable income. Section 80 C allows for tax deductions of up to Rs 150,000 per fiscal year for taxpayers who invest in certain activities.
Taxes have a significant role in a nation's governance. They enable the government to build essential amenities and infrastructure for the populace, advancing the nation. Taxes, however, can occasionally be confusing and perceived as taking a financial toll on taxpayers. Section 80 deductions were implemented by the Indian government to balance the needs of the taxpayers. The taxpayers may take advantage of a variety of deductions under Section 80.
Some of the most common activities eligible for tax deductions are:
Section 80CCC: This section offers a deduction of contribution to Pension Fund – If you invest in pension plans offered by public or private sector insurers, the premium you pay towards this fund can be used to claim deduction under section 80 CCC. This falls under the maximum limit of Rs. 1.5 Lakh.
Section 80CCD: This section offers a deduction of contribution to Pension plans by the Central Government – Under this scheme, both contributions made by the employer and the individual are eligible for a tax deduction of up to 10% of the individual’s salary.
Section 80CCF: This section provides tax deductions on long-term infrastructure bonds notified by the government. Open to both individuals and Hindu Undivided Family (HUF), the maximum deduction available under this is Rs 20,000.
Section 80CCG: Under this, investments in equity savings schemes notified by the government are eligible for deductions up to Rs 25,000 in a year.
Section 80DDB: This section offers provisions for deductions on expenditures incurred on the treatment of a particular disease. The maximum deduction under this section is Rs. 40,000. In case the treatment is for senior citizens, a deduction can be claimed up to Rs. 60,000.