Understanding tax exemption and scope of coverage
It is very important for every taxpayer to know in detail the very implications of tax savings that are allowed. In India, Section 80C of the Income Tax Act, 1961 defines the scope of tax-exemptions under various segments and for income from various sources. A brief list of main pointers for tax-exemptions in India is as follows:
- Unit linked insurance plans (ULIPs): Section 80C and 10D(D) of the Income Tax Act define the exemptions that are admissible for ULIPs. ULIPs are unit linked plans that offer market-related benefits. Under Section 80C and 10D, the payable premiums and the earnest benefits from a ULIP are eligible for tax exemptions. Section 80C mandates that the payable premiums are exempt from taxes up to a limit of Rs. 1.5 Lac in the particular financial year.
- PPF (Public Provident Fund): All the contributions to the PPF made by individuals and non-HUFs or Hindu Undivided Families are eligible for deduction under Section 80C.
- ELSS (Equity Liked Savings Scheme): Under Section 80C, the contributions tmade towards ELSS are tax exempt with an upper capping of Rs. 1.5 Lac in the particular financial year.
- EPF (Employees Provident Fund): Contributions to EPF by the employer and the employee are eligible for deduction under Section 80C.
- NPS (National Pension Scheme): Under Section 80C, the contribution towards NPS is eligible for tax exemption up to a limit of Rs. 1.5 Lac in the particular financial year.
- SCSS (Senior Citizens Savings Scheme): Under Section 80C, the contribution towards an SCSS is eligible for tax exemption up to a limit of Rs. 1.5 Lac in the particular financial year.
- Post Office savings schemes: Section 80C also covers the tax-exemptions for Post Office savings schemes in India,
- NSC (National Savings Certificate): Under Section 80C, the contribution towards NSC is eligible for tax exemption up to a limit of Rs. 1.5 Lac in the particular financial year.
HDFC Life offers various savings and investment plans that are aimed at ensuring the growth of your funds and securing your financial future. For details, click on the mentioned link: https://www.hdfclife.com/savings-plans .
Subscribe to get the latest articles directly in your inbox
Life & Term Articles
New Union Budget Highlights 2022-2023
February 05, 2022
Term Insurance Tax Benefits Under Section 80C & 80D
May 25, 2023
Term Insurance Guide
August 16, 2022
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
New or Old Regime for Financial Year 2023-2024 (Assessment Year 2024-25)
New or old tax regime for FY 2023-24 (AY 2024-25). Explore benefits, align with financial goals and make the right tax decision. To know more about it, visit HDFC Life now!
- Best Investment Plans
- What is Term Insurance
- 1 Crore Term Insurance
- Short term saving plan
- Term insurance
- Saving plans
- ULIP Plan
- Health Plans
- Child Insurance Plans
- Group Insurance Plans
- Long Term Savings Plan
- Fixed Maturity Plan
- Monthly Income Advantage Plan
- Pension Calculator
- BMI Calculator
- Compound Interest Calculator
- Term insurance Calculator
- Tax Savings Investment Options
- 2 crore term insurance
- 50 lakhs term insurance
- annuity plans
- Investment Calculator
- get pension of 30000 per month
- ULIP Returns in 5 Years
- investment plan for 5 years
- investment plan for 10 years
- 50-Lakh Investment Plan
- guaranteed returns plans
- sanchay plans
- Pension plans