what is the maximum permissible deduction of savings under 80C
Answers
Answer:
EXPLAINED BELOW
Step-by-step explanation:
A maximum investment of Rs.150,000 can be claimed for deduction under Section 80C. As per Budget 2016, an extra Rs.50,000 can be claimed under Section 80CCD(1B) if the investment made by the individual is voluntary. An individual can choose from the various NPS plans as per his risk endurance.
IN OTHER WORDS
Total investment amount under the section 80C, 80CCC and 80CCD (1) cannot exceeds Rs 1.5 lakh as per rules for FY17-18. An additional Rs 50,000 can be claimed as deduction if the investment is made in National Pension System (NPS) in which case the maximum deduction amount that will be available is Rs 2 lakh
ADDITIONAL INFO (FOR BETTER UNDERSTANDING)
Under Section 80C of the Income Tax Act of 1961, a taxpayer is allowed certain deductions that allow him to lower his tax liability against his taxable income. These deductions are as per Budget 2016 and are applicable for AY 2014-15, AY 2015-16, AY 2016-17, and AY 2017-18.
Tax deductions are offered for the taxpayer to save tax and to lower the amount of tax he needs to pay. The amount varies with the type of deductions you are claiming. It could be for medical expenses, tuition fees, or donations!
These tax exemptions are offered by the Government as a type of encouragement to individuals and corporations to provide for social causes.
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