Quick Answer: Is 80c Exemption Removed?

What is 80c in income tax 2020 21?

Section 80C of the Income Tax Act, 1961, can help you save taxes on various investments and expenses.

Under this section, you can claim up to a limit of INR 1.5 Lakh in a financial year.

It will help if you use a tax calculator wisely to maximize your benefits under all these investment options..

How can I save tax on FY 2019 20?

You can choose from the following for tax saving investments:Employee/ Voluntary Provident Fund (EPF/VPF)PPF (Public Provident fund)Sukanya Samriddhi Account.National Saving Certificate (NSC)Senior Citizen’s Saving Scheme (SCSS)5 years Tax Saving Fixed Deposit in banks/post offices.Life Insurance Premium.More items…•

Is 80c applicable in new tax slab?

Under the new tax regime, an individual cannot avail tax benefit under section 80C on the contribution made to his/her PPF account. However, any interest accrued or maturity amount received from the PPF account continues to be tax-exempt in the new tax structure as well.

What is 80c exemption?

Section 80C of the Income Tax Act of India is a clause that points to various expenditures and investments that are exempted from Income Tax. It allows for a maximum deduction of up to Rs. 1.5 lakh every year from an investor’s total taxable income.

What 80c covers in income tax?

Section 80C umbrella for Assessment Year 2020-21 (FY 2019-20)SAVINGSINVESTINGPublic Provident Fund (PPF)Equity Linked Saving Scheme (ELSS)Employee Provident Fund (EPF)National Pension System (NPS)National Saving Certificate (NSC)Unit Linked Insurance Plans (ULIPs)7 more rows•Dec 26, 2019

Can I invest more than 1.5 lakhs in 80c?

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act.

What is 80c and 10 10d?

Under section 80C, premiums that you pay towards a life insurance policy qualify for a deduction up to ₹1.5 lakh, while Section 10(10D) makes income on maturity tax-free if the premium is not more than 10% of the sum assured or the sum assured is at least 10 times the premium. … In the example, your deduction will be Rs.

Is 80c removed in Budget 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … Four new tax slabs have been introduced, making it a total of seven slabs.

Which tax exemption is removed?

Salaried taxpayers who opt for the new regime will have to forgo standard deduction as well as exemptions under chapter VI-A, including HRA, investments under Section 80C, medical insurance premium and even leave travel allowance which is tax free, if claimed once in a block of two years.

How can I save tax on FY 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

What exemptions have been removed in Budget 2020?

What’s out Some of the 70 exemptions and deductions you won’t get in new regime.Section 80C investments.House rent allowance.Housing loan interest.Leave travel allowance.Medical insurance premium.Standard deduction.Savings bank interest.Education loan interest.

How much is the 2020 standard deduction?

2020 Standard Deduction AmountsFiling Status2020 Standard DeductionSingle; Married Filing Separately$12,400Married Filing Jointly$24,800Head of Household$18,650Oct 27, 2020

Is tax slab increased to 5 lakhs?

Budget 2019 presented by Nirmala Sitharaman in the Parliament, kept the personal income tax rates and slabs changes as announced in the Interim Budget 2019 unchanged. This meant that those having taxable income of up to Rs 5 lakh will not have to pay tax for FY 2019-20.

How much is 80c limit?

Section 80C : You can claim a deduction of Rs 1.5 lakh your total income under section 80C. In simple terms, you can reduce up to Rs 1,50,000 from your total taxable income, and it is available for individuals and HUFs.

Which slab is better for income tax?

Income-tax rates under the new tax regime v/s the old tax regimeIncome slabs (Rs)Tax Rate(Old Regime)Tax Rate(New Regime – devoid of exemptions & deductions)2.5-5 lakh5%5%5-7.5 lakh20%10%7.5-10 lakh20%15%10-12.5 lakh30%20%3 more rows•Feb 7, 2020

What is the rebate for AY 2020 21?

From the AY 2020-21 rebate u/s 87A (only for Individual) is available only if the Net Total Income < Rs. 5,00,000/-. The quantum of maximum rebate will be Rs. 12500/-....Income tax slabs.Taxable incomeTax RateRs. 2,50,000 to Rs. 5,00,0005%Rs. 5,00,000 to Rs. 10,00,00020%Above Rs. 10,00,00030%1 more row•Aug 10, 2020

What is Section 87a of Income Tax?

The income tax rebate under Section 87a offers some relief to the taxpayers who fall under the tax slab of 10%. Any individual whose annual net income is not more than Rs. 5 Lakh is eligible to claim tax rebate under Section 87a of the Income Tax Act, 1961. This means an individual can get a rebate on tax of up to Rs.

Does FY 2020/21 have standard deduction?

Therefore, the taxpayer can claim a standard deduction of Rs. 40,000* or the amount of pension, whichever is less. *Increased to Rs 50,000 for FY 2019-2020(AY 2020-21) through the Interim Budget 2019.