Schedule a call Click here
Give missed call to buy +91-9980970424
Contact Us
For NRI Customers
(To Buy a Policy)
(If you're our existing customer)
For Online Policy Purchase
(New and Ongoing Applications)
Branch Locator
For Existing Customers
(Issued Policy)
Fund Performance Check
Login
Customers
Employees
Partner
Difference between Section 80C and 80CCC
The Government of India provides certain tax deductions and exemptions, allowing taxpayers to minimise their tax liability. The various sections of the Income Tax Act of 1961 detail these exemptions. Unfortunately, since many people do not have a complete understanding of the Income Tax Act, they end up paying higher taxes than necessary. Life insurance policies provide tax exemptions and deductions under various sections of the Act. Let’s look at the exemptions available under sections 80C and 80CCC of the Income Tax Act and understand the differences between them.
What Falls Under Section 80C#?
Section 80C of the Income Tax Act outlines the deductions available to an individual or Hindu Undivided Family (HUF). You can claim a maximum deduction of INR 1, 50,000 per year under this section. The following tax-saving instruments fall under Section 80C:
Equity-Linked Savings Schemes (ELSS)
ELSS is a type of mutual fund scheme. As the name suggests, they invest mostly in equities. You can claim deductions against the amount you invest each year up to INR 1, 50,000.
Life Insurance Premiums
Any premium you pay towards life insurance plans, including Unit-Linked insurance Plans, is exempt from your total income up to INR 1, 50,000 per year. In case of an individual, exemption is available for premium paid on policies for self, spouse and children. In case of HUF, exemption is available for premium paid on policies for any member thereof.
Employee Provident Fund
Your contributions towards your Employee Provident Fund (EPF), also qualify for the exemption of INR 1, 50,000 per year under Section 80C.
National Savings Certificate
The postal department of India offers investment opportunities under the National Savings Certificate. The amount invested is exempt from taxation under section 80C
Post Office Fixed Deposits
The post office offers five-year fixed deposit accounts and the money put in the deposit is eligible for tax exemptions under Section 80C. It is important to note that tax exemption is available only for 5 year fixed deposits.
Child’s Tuition Fees
If you’re paying your child’s fees for any college, university, school or any other educational institution situated within India for full time education, you might be eligible to claim deductions of up to INR 1, 50,000 per year for up to two children.
Home Loan
Under Section 80C, the amount you pay towards your home loan principal repayment can get deducted from your taxable income as an exemption up to INR 1, 50,000
What Falls Under Section 80CCC#?
Section 80CCC of the Income Tax Act, particularly deals with the purchase of annuity and pension plans. Insurance companies offer these products to help individuals plan their retirement finances. Since this section is read as part of Section 80C, you can avail of a maximum deduction of up to INR 1, 50,000 per year. You can avail this deduction if the annuity or pension fund is eligible as per Section 10(23AAB). The deduction under Section 80CCC# can be availed by residents and non-residents but not a Hindu Undivided Family.
Understanding the Deductions under Section 80CCC
You must fully understand the terms and conditions to avail of tax deductions and file your taxes correctly. Under Section 80CCC, you can get a maximum deduction of INR 1, 50,000 per year for pension plans that meet the conditions outlined in Section 10(23AAB)#. You cannot claim any deductions for the interest or bonuses you receive from the plan. Your annuity plan proceeds and the surrender value are both taxable.
Can I Claim Deductions Under Both Sections?
As a taxpayer, you can claim deductions under both Section 80C and 80CCC, but the total deduction for both cannot exceed INR 1, 50,000. You can always check your tax calculations with an accountant to ensure you have paid all your taxes and do not attract any fines or defaults.
Educating yourself about the various sections of the Income Tax Act allows you to plan your tax savings. You can leverage the knowledge to make smart investments and optimise your taxes as well.
ARN - ED/01/23/31316
RELATED ARTICLES
- A Look at Income Tax Slabs for Women
- Simplify ITR Filing By Segregating Your Income
- How to Save Tax with Savings Plan?
- Save on Taxes Legally with These Investment Strategies
- Health Insurance Tax Benefits
- GST On Rental Income
Life Insurance Popular Articles
Term Plan Articles
Investment Articles
Tax Articles
Retirement Articles
ULIP Articles
Subscribe to get the latest articles directly in your inbox
Health Plans Articles
Child Plans Articles
Popular Calculators
Life Insurance Popular Articles
Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
Written By:
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance solutions - protection, pension, savings, investment, annuity and health.
#Tax benefits under the policy are subject to conditions under Sections 80C, 80CCC, 10(23AAB) and other provisions of the Income Tax Act, 1961.
#Tax Laws are subject to change from time to time.
#This material has been prepared for information purposes only, should not be relied on for tax or accounting advice. It is requested to seek tax advice of your Chartered Accountant or personal tax advisor with respect to your personal tax liabilities under the Income-tax law.
Popular Searches
- Best Investment Plans
- What is Term Insurance
- 1 Crore Term Insurance
- Short term saving plan
- Saving plans
- ULIP Plan
- Health Plans
- Child Insurance Plans
- Group Insurance Plans
- Long Term Savings Plan
- Fixed Maturity Plan
- Monthly Income Advantage Plan
- Pension Calculator
- BMI Calculator
- Compound Interest Calculator
- Term insurance Calculator
- Tax Savings Investment Options
- 2 crore term insurance
- 50 lakhs term insurance
- annuity plans
- Investment Calculator
- get pension of 30000 per month
- ULIP Returns in 5 Years
- investment plan for 5 years
- investment plan for 10 years
- 50-Lakh Investment Plan
- guaranteed returns plans
- sanchay plans
- Pension plans