Section 80 C and Taxation
Section 80 C and Taxation
Section 80 C and Taxation
Here are the various investments you can make to save tax under Section 80C of the Income Tax
Act:
Investment Minimum lock-in Rate of interest Risk Returns
options period factor
National Pension Till the individual 8% to 10% High No
System reaches the age of 60
years
Equity Linked 3 years Ranging between 12% High No
Saving Scheme and 15% depending on the
fluctuations in the market
Public Provident 15 years 7.9% Low Yes
Fund
Senior Citizen 5 years 8.60% Low Yes
Savings Scheme
National Savings 5 years 7.9% Low Yes
Certificate
Unit Linked 5 years Ranging between 8% and Moderate No
Insurance Plan 10% depending on the
fluctuations in the market
Fixed Deposit 5 years Up to 8.40% Low Yes
Sukanya 8 years 8.50% Low Yes
Samriddhi Yojana
From Rs.2,50,001 to 5% of the total income that is more than Rs.2.5 lakh + 4%
Rs.5,00,000 cess
From Rs.5,00,001 to 10% of the total income that is more than Rs.5 lakh + 4%
Rs.7,50,000 cess
From Rs.7,50,001 to 15% of the total income that is more than Rs.7.5 lakh + 4%
Rs.10,00,000 cess
From Rs.10,00,001 to 20% of the total income that is more than Rs.10 lakh + 4%
Rs.12,50,000 cess
From Rs.12,50,001 to 25% of the total income that is more than Rs.12.5 lakh +
Rs.15,00,000 4% cess
Income above Rs.15,00,001 30% of the total income that is more than Rs.15 lakh + 4%
cess
Things you must keep in mind before opting for the New Tax Slab
There are few things you must keep in mind before opting for the new tax slab:
The option can be exercised on or before for every previous year if you as an individual
or as a member of a Hindu Undivided Family (HUF) do not have any business income.
As a taxpayer once you choose the next tax regime as your option, you cannot change it
during the year. In case you withdraw your option for the next tax regime and revert back
to the old tax regime, you can opt for the new tax regime again during the financial year
again.