Income Tax Returns Filing
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A person must submit an Income Tax Return (ITR) form to the Indian Income Tax Department. It includes details on the individual's earnings and the yearly taxes owed. Information included in an ITR must be specific to a financial year, which is which is one that begins on April 1 and ends on March 31 of the following year.
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TAX SLABS UNDER OLD V/S NEW TAX REGIME
Section 80C: Understanding Deductions Under Section 80C
Section 80C: Understanding Deductions Under Section 80C
What is Section 80C?
Section 80C, including Sections 80CCC & 80CCD, prescribes a combination of activities. If you want to utilise your income in some of these activities during the Previous Year (PY) you can claim the amount as a deduction from your total taxable income for the PY.
For Example: Assuming you earned a gross total income of `10,00,000/- as taxable income in PY 2015-16 (Assessment Year will be 2016-17 when you will estimate and pay the tax on this income). If you invest `100,000/- of this income in any or multiple activities listed under Section 80C, your total taxable income will be reduced to `900,000/- for the PY.
How to avail tax deductions under Section 80C?
Activities under Section 80C can be divided into two parts:
Investment Activities: Your money is parked in an investment for a while before being retrieved.
Spending Activities: The Section 80C-listed expenditures are what you use your money for.
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