ITR Filing FY23-24: Claim Tax Deductions under Section 80C available upto Rs.1.5 Lakh

ITR Filing FY23-24: Section 80C exemptions can be availed of when filing the ITR for FY 2023-24. The amount of tax that individuals have to pay can be reduced by availing of the deductions permitted under Section 80C of the Income-tax Act, 1961, in the old tax regime. As a matter of fact, according to Section 80C, to claim such allowances, investors must incur specific kinds of expenditures or invest in specific securities.

These tax deductions can be claimed by you next year via the Income Tax Return (ITR) that you file for FY 2023–24 or AY 2024–25. What are allowed as Section 80C investments? Section 80C deductions can be availed by whom? To continue learning more, read on.

ITR submission for AY24–25:

What are the persons to whom Section 80C deductions apply?

• According to Section 80C of the Indian Income Tax Act, this section applies to both residents of India and non-resident Indians (NRIs).
• Section 80C deduction is allowed for Hindu Undivided Families (HUF) as well under the old tax regime. It needs to be pointed out that such investments made by companies, LLP, and partnership firms are not permitted to deduct the expenses qualified under Section 80C.

What is the maximum limit that can be claimed under Section 80C of the Indian Income Tax Act for income tax deductions?

• The maximum limit that can be claimed under Section 80C of the Income Tax Act for income tax deductions by assessees while filing an ITR for FY 2023-24 or AY 2024-25 is up to Rs.1.5Lakh.

Which Investment qualifies for deductions under Section 80C?

These are the investment instruments that qualify under Section 80C:

1) Life Insurance Premium, Education expenses, SCSS, PPF, SSA, NSC, ELSS, Tax-Saving FD, etc.

2) Fixed deposit: it offers tax savings and it’s locked up for five years.

3) Concerning the taxation law specified in Section 80C, interest-bearing EPF returns for workers who have served for five years and above are tax-free.

4) Those reimbursed to the government-funded pension schemes, particularly the Atal Pension Yojana or any other government-approved scheme.