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    Section 80 C and Taxation

    Uploaded by

    deepeshmahajan
    The document provides information on various investment options that can be made under Section 80C of the Income Tax Act to save taxes. It lists the investment options of National Pension System, Equity Linked Saving Scheme, Public Provident Fund, Senior Citizen Savings Scheme, National Savings Certificate, Unit Linked Insurance Plan, Fixed Deposit, and Sukanya Samriddhi Yojana. It provides details on the minimum lock-in period, expected rate of return, risk factor, and whether returns are guaranteed for each of these options. The document also shares the old and new tax slab rates applicable under the new optional income tax regime for individuals.

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    Section 80 C and Taxation

    Uploaded by

    deepeshmahajan
    25 views3 pages
    The document provides information on various investment options that can be made under Section 80C of the Income Tax Act to save taxes. It lists the investment options of National Pension System, Equity Linked Saving Scheme, Public Provident Fund, Senior Citizen Savings Scheme, National Savings Certificate, Unit Linked Insurance Plan, Fixed Deposit, and Sukanya Samriddhi Yojana. It provides details on the minimum lock-in period, expected rate of return, risk factor, and whether returns are guaranteed for each of these options. The document also shares the old and new tax slab rates applicable under the new optional income tax regime for individuals.

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    The document provides information on various investment options that can be made under Section 80C of the Income Tax Act to save taxes. It lists the investment options of National Pension System, Equity Linked Saving Scheme, Public Provident Fund, Senior Citizen Savings Scheme, National Savings Certificate, Unit Linked Insurance Plan, Fixed Deposit, and Sukanya Samriddhi Yojana. It provides details on the minimum lock-in period, expected rate of return, risk factor, and whether returns are guaranteed for each of these options. The document also shares the old and new tax slab rates applicable under the new optional income tax regime for individuals.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views3 pages

    Section 80 C and Taxation

    Uploaded by

    deepeshmahajan
    The document provides information on various investment options that can be made under Section 80C of the Income Tax Act to save taxes. It lists the investment options of National Pension System, Equity Linked Saving Scheme, Public Provident Fund, Senior Citizen Savings Scheme, National Savings Certificate, Unit Linked Insurance Plan, Fixed Deposit, and Sukanya Samriddhi Yojana. It provides details on the minimum lock-in period, expected rate of return, risk factor, and whether returns are guaranteed for each of these options. The document also shares the old and new tax slab rates applicable under the new optional income tax regime for individuals.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Deductions on Investments under Section 80C of the Income Tax Act

    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

    Tax Slabs and Rates under the New Regime


    The exemption is given to people earning up to Rs. 5 lakh remains the same. Below is the table
    with the old and new tax rate as applicable on the annual income:
    Annual Income (Rs.) Old Tax Rate New Tax Rate
    Up to Rs. 2.5 lakhs Nil Nil
    Rs. 2.5 lakhs to Rs. 5 lakhs 5% 5%
    Rs. 5 lakhs to Rs. 7.5 lakhs 20% 10%
    Rs. 7.5 lakhs to Rs. 10 lakhs 20% 15%
    Rs. 10 lakhs to Rs. 12.5 lakhs 30% 20%
    Rs. 12.5 lakhs to Rs. 15 lakhs 30% 25%
    Rs. 15 lakhs and above 30% 30%
    New Income Tax Slab for Individual (New Regime)

    Income Tax Slab Tax Rate

    Up to Rs.2.5 lakh Nil

    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.

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