Section 80 C of the Income Tax Act permits you to deduce up to Rs 1.50 lakh in regard of specific things of speculations and costs. These deductions are liable to a few limitations regarding the people for whom you can guarantee these and the secure period for which you have to hold the ventures.
The limitations are listed below:
Repayment of the home loan
Deduction for repaying the home loan can be guaranteed just if the advance has been taken from a proper money related organizations like banks, lodging account organizations. You can likewise profit the advantage in the event that you have benefited home credit from your boss, gave your manager is an open restricted organization, focal government, state government or a board, an enterprise or a college set up by law. In regard of advances taken from your companions and relatives, you can guarantee conclusion under Section 24(b) for intrigue.
Deduction is accessible for private property and not for business property. Additionally, the deduction must be asserted after you have received ownership of the house, despite the fact that the repayment of home loan may have started before consummation of development.
By chance if you sell the property five years from the end of the monetary year, in which ownership of the property was taken, all findings permitted prior will be turned around and are dealt with as wage of the year in which the property is exchanged. Be that as it may, if the home advance is paid ahead of time , there is no inversion of the duty conclusion. It is fascinating to take note of that there is no comparative arrangement for switching conclusions took into account enthusiasm under Section 24(b) regardless of whether you offer the house before five years. This implies just the deduction took into consideration repaying of the primary sum is switched, yet the deduction considered for repaying the interest amount remains all the same.
Premium for Life Insurance
An individual can pay and claim deduction for life insurance premium for himself, life partner and youngsters, regardless of whether subordinate or not. In any case, children will not be able to claim the tax benefits for the life insurance that is for the parents. The Hindu Undivided Family can pay and claim deduction for the premium for any of its individuals. The secured time is of two years. You can’t end or let the policy be lapsed before finish of two years.
Expense of Education
Your children’ educational cost charge is qualified under Section 80 C, however just for two kids and that, as well, for full-time course in an instructive establishment arranged in India as it were. The deduction is accessible just for educational cost charge paid. Thus, any sum paid as gift or as improvement charges won’t be qualified for this finding. If that there are more than two kids, the deduction in regard of other youngsters can be guaranteed by your partner, if your partner has the assessable wage. Indeed, even in the event of two youngsters, abundance charge can be asserted by the other mate, if the breaking point of Rs 1.50 lakh gets depleted for one partner.
Depositions under Senior Citizen Scheme
Senior Citizens can guarantee deduction under 80C for cash saved in “Senior Citizen Savings Scheme” which must be kept up for multi year. If the amount has been pulled out before five years, the sum pulled back ends up tax assessable if deduction has been guaranteed before.
ELSS (Equity Linked Saving Schemes) of shared assets have picked up prominence since these have given great returns over the significant lot. The units distributed under ELSS plans have a secure time of three years. In the event of speculation made through Systematic Investment Plan (SIP), three years are computed from the date of each SIP portion.
Try not to Lose Your Tax Benefits
If the property is sold in five years subsequent to after taking possession, all deductions permitted in before year shall be reversed.
If the Senior Citizen Scheme is withdrawn before five years, the sum ends up assessable if deduction was claimed earlier.