INVESTMENT PLANNING THROUGH SECTION 80C FOR AY 2019-20 OF INCOME TAX ACT, 1961

Assessee can make tax planning through investment in specified modes from gross total income. It is available only to an individual and HUF. Assessee can make maximum investment of Rs.1.50 lakh along with section 80CCC & 80CCD.

The Following are the admissible deduction:

1. Premium paid on insurance on life of the individual or HUF.

2. Sum paid under the contract for deferred on life of the Assessee or his/her spouse or children.

3. Sum deducted by the government from the salary of an employee for securing a deferred annuity for self, spouse or children. The sum so deducted should not exceed 1/5th of the salary income.

4. Contribution to any Public Provident Fund (PPF) regulated by the Provident Fund Act, 1925.

5. Contribution to employee any to Recognized Provident Fund.

6. Contribution by an employee to an approved superannuation Fund.

7. Contribution made to any Public Provident Fund set up by the central government.

8. Subscription to any deposit scheme or contribution to any pension fund set up by the National Housing Bank.

9. Payment of Tuition Fees by an individual Assessee at any time of admission to any university , college, school or other educational institutions within India for the purpose of full time education of any two children.

10. Subscription to deposit scheme of Public Sector engaged in providing housing finance.

11. Principle repayment of Housing Loan.

12. Subscription to units of Mutual Funds U/s 10(23D)

13. Sum deposited in Fixed Deposits (FDR) with tenure of Five Years.

14. Sum deposited in Five years Post Office Time Deposit scheme.

In above mentioned modes of investment only following investment schemes are popular:

  • LIC Premium paid
  • PPF Contribution
  • Payment of Tuition Fees paid
  • Principle repayment of Housing Loan.
  • Mutual Fund
  • FDR of Bank and Post office for Five Years.

Assessee can make investment in above schemes but maximum deduction is available only of Rs.1.5 lakh.

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