Investments are expenses that the taxpayer acquires during the year that are subtracted from his gross income.
You can avail the benefit of Rs 1,50,000 U/S 80C+80CCC+80CCD(1)
- 80C = LIC, PF(Provident Fund), PPF(Public Provident Fund), EPF(Employee Provident Fund), FD(Fixed deposits) ,ELSS(Equity linked saving certificate), NSC(National Saving certificate),Sukanya Samriddhi Yojna,Stamp duty charges, Tution fees,Senior citizen savings etc.
- 80CCC = Contribution to certain pension funds set by LIC/ Other insurer. Maximum limit is Rs 50,000
- 80 CCD (1) = Contributions to specified pension funds set up by government. Maximum limit is Rs 50,000
- 80CCD 1 (B)= Contribution to Atal pension scheme or NPS.
- 80CCD (2) is applied only to salaried individuals.It is contribution to specific pension funds set up by central government.
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What is the risk in REC/NHAI bond investment?
The bond comes with minimum risk and does not need daily monitoring. Moreover, you do not need to pay a commission to get the bond. The bond also comes with AAA/stable rating by Crisil Ltd and AAA(Ind)/(Affirmed) by Fitch.
Can NRIs invest in NSC?
No, investment in NSC is only open for resident Indians.
What are the tax advantages of investing in PPF?
PPF enjoys EEE status when it come to tax. This means that PPF is exempt from tax on all its 3 components- a) initial investment, b) interest, c) maturity amount
Is it possible to invest more than Rs.50 lakhs in the REC/NHAI bonds?
No. After amendment in the Finance Act (No.2) 2014, it is not possible to invest more than Rs.50 lakhs for benefits under section 54EC of the Act. But you may consider investment u/s 54F or 54.
What is PPF?
Public Provident Fund (PPF) scheme is a popular long-term investment option backed by the Government of India which offers safety with returns in the form of interest, which is compounded annually.