Income tax revenue is one of the most important sources of the government's income and the government keeps encouraging the taxpayer to pay tax properly. And for this government provide deductions in section 80C in Income Tax Act 1961.
For every service class taxpayer, saving their income tax is very important and Section 80C deduction is the most popular deduction benefit available by salaried employees.
The best way you can utilize 80C deduction to save your income tax we will discuss as following:-
Investment up to ₹1.5 lakh
You can easily reduce up to ₹ 1.5 lakh from your total taxable income making use of Section 80C norms. The Income Tax Department returns any excess taxes paid by you based on your investments in life insurance, provident fund (EPF and PPF), National Pension System (NPS), National Savings Certificate (NSC), and tax-saving fixed deposits.
According to the Income-tax department of India, these are the things that can be count as investments. A life insurance premium paid. Deposit in provident fund/superannuation fund. Investment in fixed deposit/Bonds. Investment in NSC. The tuition fee of two children. Repayment of housing loan (principal component).
Education about managing the taxes of taxpayers is significant to the growth of the country. More people pay their taxes will help the government to make better decisions regarding the country's infrastructure growth and development in other areas too.