Exemption U/s 80C | With All-in-One Automated Income Tax Preparation Software in Excel for Non-Government Employees for Financial Year 2022-23

Exemption U/s 80C | Investment under Section 80C has two purposes: first, to make investments, and

 second, to save tax. Thus, the tax thus saved and the investments thus made can be used in the future.

Miscellaneous funds under section 80C

There are several investments under section 80C which allows the assessee to reduce his tax liability to Rs. 1.5 lac. These investments are as follows:

Exemption U/s 80C

Public Provident Fund

Public Provident Fund or PPF Scheme is a long-term investment scheme backed by the Government of India. Also, one can invest in PPF by opening an account and making a minimum deposit of Rs. 500 up to a sum of Rs. 1.5 lac. In addition, the PPF scheme has a lock-in period of 15 years and the current interest rate is 7.1%. In addition, the premium, as well as the interest amount on the PPF, is tax-free.

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Exemption U/s 80C

Sukanya Samridhi Yojana

Sukanya Samridhi Yojana or SSY is one of the best performing investments under section 80C. This is because it is a government initiative aimed at uplifting the girl child. It was launched in 2015. Thus, a person with a daughter can open an SSY account with some post offices and banks in India. The minimum deposit is Rs. 250 and the maximum deposit is Rs. 1.5 lac. This account is operational until the girl reaches the age of 21. However, there is the possibility of partial withdrawal after the girl turns 18 to pay for the girl’s education.

Life insurance premiums

Life insurance premiums, commonly known as LIC premiums, are common investments under Section 80C. The reason is that the life insurance premium not only provides life cover to the individual but also protects his family and gives them financial independence accordingly. Maximum limit Rs.1.5 Lakh.

Provident fund scheme for employees

The Employees Provident Fund or EPF Scheme is a long-term retirement scheme available to salaried employees. Under this scheme, the employer and the employee pay the same premium of 12% of the basic salary plus severance pay. When an employee retires, the amount so earned, plus interest is paid directly to the employee. Additionally, the gift is exempt from tax under section 80C.

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Exemption U/s 80C

5 Years Tax Savings Fixed Deposits

Tax-saving 5-year fixed deposits are similar to fixed deposits. Maximum deduction of up to Rs. 1.5 lacs under section 80C in these charge-saving FDs.

National Savings Certificate (NSC).

National Savings Certificate or NSC is yet another investment option under Section 80C backed by the Government of India. Therefore, the guarantee includes returns. The current interest rate for NSC is 6.80% and it has a 5-year lock-in period.

Shared savings plan and link

Equity Linked Savings Scheme or ELSS is an investment fund that invests at least 80% of its assets in the stock market. These are also known as tax-saving mutual funds as they can avail deductions under Section 80C. In addition, they have a lock-in period of only 3 years and the return is dependent on market norms.

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Exemption U/s 80C

National pension system

The National Pension Scheme or NPS is a scheme that allows working professionals and earners in other sectors to benefit from pension benefits. For example, any Indian between the ages of 18 and 60 can open an NPS account. Investments up to Rs. 1.5 lakh in this scheme are eligible for tax deduction under Section 80C of the Income Tax Act. Apart from this, one can also get some tax rebates on investments of Rs. 50,000 under Section 80CCD (1B). The lock-in period is also up to retirement age and the current interest rate is 7.10%.

Unit Lien Insurance Plans

Unit Linked Insurance Plans or ULIPs are effective investments under Section 80C that provide investors with investment and insurance in one package. According to ULIPs, part of the investment is in life insurance, and the rest is in equity, debt, or a combination of both.

Thus, under Section 80C, the premium amount of ULIP is tax deductible up to Rs. 1.5 million per annum. In addition, policy returns at maturity are exempt from income tax under Section 10(10D).

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Salary Statement

Feature of this Excel Utility:-

1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)

2) This Excel Utility has an option where you can choose your option as a New or Old Tax Regime

3) This Excel Utility has a unique Salary Structure for Government and Non-Government Employees Salary Structure.

4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2022-23 (Update Version)

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2022-23

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2022-23

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