InvestorQ : The cutoff for the Investments under 80C has been extended till 30th June 2020. Will the time frame help considering the tax deductions by employers had been done by the 31st of March?
Tushar Jambhekar made post

The cutoff for the Investments under 80C has been extended till 30th June 2020. Will the time frame help considering the tax deductions by employers had been done by the 31st of March?

Answer
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Ishita Jain answered.
4 months ago


Pandemic has shaken the entire world by now, meanwhile the Indian Government has announced relief to the taxpayers by extending the deadline for making tax-exempting investments from 31st March 2020 to 30th June 2020.

This step by the centre was with the aim to infuse liquidity in the market. After I read more about it, I found many ways through which one cansave tax under the Income-Tax Act 1961.

Here are the five highest tax-saving investment avenues that could be a savior for you:

1. Section 80C Individual can save maximum tax, reduce your gross total income by a maximum of Rs.1,50,000. You must include investment in Life Insurance premiums (LIC), Pubic Provident Fund (PPF), Equity-Linked saving scheme, Senior Citizens Saving Scheme (SCSS), Sukanya Samriddhi Account, National Savings Certificate (NSC), Employees’ Provident Fund (EPF), etc.

2. Section 80D Deduction is allowed in premium paid towards health insurance policies with the maximum deduction of Rs. 25000 those paying tax at the rate of 5.12%, 20.80%, 31.20% will save Rs. 1300, 5200 and 7800 respectively.

3. Section 80CCD (1B) One can claim additional deduction of Rs. 50,000 by investing in the National Pension Scheme. Those paying tax at the rate of 5.12%, 20.80%, and 31.20% can save a maximum of Rs. 2600, Rs. 10,400 and Rs. 15,600 respectively.

4. Section 24(B): Claim tax benefit on interest payment in respect of home loan taken for self-occupied property. Avail maximum deduction u/s 24(B) is Rs. 2,00,000 p.a Those paying tax under brackets 5.20%, 20.80% and 31.20% will save Rs. 10,400, Rs. 41,600 and Rs. 62,400 respectively.

5. Section 80G: During this phase, it could be a great tax saving tool as any contribution to the PM CARES fund will be eligible for deduction u/s 80G. Any such contribution shall be eligible for a 50% deduction as per section 80G(5).


I have always been a keen reader, my source to read about this topic is https://medium.com/@InvestorQ/your-tax-saving-guide-for-2020-c19aeb590e3f