What Is Current 80c Limit?

Can I save tax more than 1.5 lakh?

The most popular avenue for tax-saving is section 80C of the Income Tax Act.

Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount..

How can I save my tax after 80c?

1) Tax saving with NPS under Section 80CCD (1B): Taxpayers can save additional tax by investing up to ₹ 50,000 in NPS. This is over and above the benefit, they can claim on contributions under Section 80c. They also have the option of utilizing NPS for the ₹ 1.5 lakh limit of Section 80c.

Is PF considered in 80c?

An employee’s contribution to the Employee Provident Fund (EPF) account also earns a tax break under Section 80C of up to Rs 1.5 lakh. This amounts to 12% of salary that is deducted by an employer and deposited in the EPF or other recognised provident funds. The current interest rate on the EPF is 8.6%.

What is the 80c limit for 2019 20?

Besides the tax deductions under Section 80C and 24b, an individual can now claim up to Rs 1.5 lakh under Section 80EEA from FY 2019-20 or AY 2020-21 onwards, subject to below conditions; The home loan should have been sanctioned between 1st April, 2019 to 31st March 2020.

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

What is 80c in income tax 2020 21?

Income Tax Deductions under New Tax Regime FY 2020-21 The most commonly claimed deductions under section 80C will go. Section 80C deductions claimed for provident fund contributions, life insurance premium, school tuition fee for children and various specified investments such as ELSS, NPS, PPF can not be availed.

What are the 70 exemptions removed?

What’s out: Here are a few of the 70 exemptions and deductions you won’t see in the new regime- Section 80C investments, house rent allowance, home loan interest, leave travel allowance, medical insurance premium, standard deduction, savings account interest, education loan interest.

Is tax slab increased to 5 lakhs?

However, if your net taxable income exceeds Rs 5 lakh by even Re 1, say it is Rs 5,00,001, then you will not be eligible to avail the benefit of tax rebate….More From Our Partners.IncomeTax liabilityBetween Rs 2.5 lakh and Rs 5 lakh5% of Rs 2.5 lakh = Rs 12,5004 more rows•Feb 28, 2020

What is the MAT rate for AY 2020 21?

How to calculate MAT? MAT is equal to 18.5% (15% from AY 2020-21) of Book profits (Plus Surcharge and cess as applicable).

Is 80c limit increased?

Finance Minister Arun Jaitley had increased the overall limit of Section 80C to Rs. 1,50,000 from Rs. 1,00,000 in Budget 2014 to boost contributions to small savings schemes.

How can I save tax on 2020 21?

Different investment options that can be claimed for tax deduction under section 80C are:Employee Provident Fund (EPF)Public Provident Fund (PPF)National Savings Certificates (NSC)5-year post office or bank saving accounts.Equity Linked Savings Schemes (ELSS)Post Office Senior Citizen Scheme.Tuition fees of Kids.More items…•

Which deduction is still allowed for 2020?

Deduction from family pension under Section 57. Any deduction under chapter VIA (like Section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, and so on….Share article.Taxable Income SlabsTax RatesRs 15 lakh and above30%6 more rows•Feb 7, 2020

What is the tax slab for 2020 21?

Income tax slab rate applicable for New Tax regime – FY 2020-21.Income Tax SlabNew Regime Income Tax Slab Rates for FY 2020-21 (Applicable for All Individuals & HUF)Rs. 5.00 lakhs- Rs 7.5 Lakhs10%Rs 7.5 lakhs – Rs 10.00 Lakhs15%Rs 10.00 lakhs – Rs. 12.50 Lakhs20%Rs. 12.5 lakhs- Rs. 15.00 Lakhs25%4 more rows

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.