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What is the 80C limit for 2020-21?

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Olivia House

Published Feb 22, 2026

What is the 80C limit for 2020-21?

Rs 1.5 lakh a year

Correspondingly, what are the exemption for income tax 2020-21?

Summary of Slab & Deductions under Income Tax AY 2020-21

CATEGORY<60<80
Basic Exemption Limit₹ 2,50,000₹ 3,00,000
Recalculating The Maximum Total Income At Which , There Is No Tax
Total Income After Deductions₹ 5,00,000₹ 5,00,000
Tax On Total Income₹ 12,500₹ 10,000

Beside above, what is the 80C limit for AY 2021 22? * Also Payment made for Stamp Duty and Registration Fees can also be claimed as deduction along with principal amount (Subject to ceiling limit of INR 1,50,000) in the year in which it is paid.

Secondly, what all comes under 80C?

80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax

What is the standard deduction for FY 2020-21?

Standard deduction means a flat deduction to individuals earning salary or pension income. It was introduced back in Budget 2018 in lieu of exemption of transport allowance and reimbursement of miscellaneous medical expenses. For the FY 2019-20 & FY 2020-21 the limit of the standard deduction is Rs 50,000.

How can I save tax on 2020-21?

Tips for Saving Tax in FY 2020-21
  1. Invest in Equity-Linked Saving Scheme (ELSS)
  2. Invest in the National Pension Scheme.
  3. Invest in Sukanya Samriddhi Yojna.
  4. Know When to Opt for the New Tax Regime.

How can I save my income tax 2020-21?

One of the best ways to save tax is nothing but contributing some amount to NPS. There is a deduction available under Section 80CCD up to Rs 50,000 for contributions to the NPS. This contribution helps you to invest in equity and debt pension funds so that you can build a retirement corpus.

What is the slab rate for AY 2020-21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22
Taxable incomeTax Rate
Up to Rs. 2,50,000Nil
Rs. 2,50,001 to Rs. 5,00,0005%
Rs. 5,00,001 to Rs. 10,00,00020%
Above Rs. 10,00,00030%

Is 80C removed in 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.

How do you calculate income tax for the financial year 2020-21?

Therefore, your net taxable income will be Rs 15, 40,000 (Rs 16 lakh minus Rs 60,000). The income tax liability in the new tax regime will be calculated on Rs 15.40 lakh.
S. No.Income slabsIncome tax rate (%)
1Up to Rs 2.5 lakhNil
2Between Rs 2,50,001 and Rs 5 lakh5%
3Between Rs 5,00,001 and Rs 7.5 lakh10%

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.

What is the tax allowance for 2020 2021?

The amounts assume the individual is receiving the standard Personal Allowance for tax-free income of £12,570 in the 2021/22 tax year (or £12,500 in the 2020/21 tax year). The Personal Allowance is reduced by £1 for every £2 earned over £100,000.

What are the exemptions for income tax 2020?

You can claim the following tax deductions in schedule DI: Deductions for tax-saving investments under section 80C, 80CCC and 80CCD. Deduction for payments such as medical insurance and expenses under section 80D, 80DD and 80DDB. Interest on housing and other eligible loans under section 80E, 80EE, 80EEA and 80EEB.

What is 80C and 10 10D?

Section 80C offers deductions of up to Rs. 1.5 lakh on life insurance premiums paid in a particular year. Section 10(10D) specializes in offering tax deductions on claims, i.e. death and maturity benefit, which includes all forms of accrued bonuses against the respective life insurance policies.

Can I invest more than 1.5 lakhs in 80C?

Your total investment upto 1.5 lakhs will only be allowed as deduction u/s 80C. The additional contributions do not have any problem from tax point of view, except that you cannot claim deduction u/s 80C on them.

Is LIC covered under 80C?

The tax benefits provided on the payment of LIC premium comes under section 80C of Income Tax Act, 1961.

What is 80C investment?

Section 80C of the Income Tax Act provides a deduction of Rs 1.5 lakh from the taxable income of an individual for certain investments made during the financial year. There are various avenues to make investments and avail deduction under this act. Some are discussed below. 1. Public Provident Fund (PPF)

How can I save my tax after 80C?

Let us take a look at some of such tax-saving options you may consider other than those available under Section 80C:
  1. Section 80CCD (1B): Additional deduction for NPS investments.
  2. Section 80D: Health insurance premium.
  3. Section 10(13A): HRA exemption by paying rent to parents.

What does 80C mean?

Among the various tax-saving options, most individuals prefer to claim tax deduction under Section 80C of the Income Tax Act, 1961. Section 80C allows individuals and HUFs to claim tax deduction of up to Rs. 1,50,000 from their gross total income for certain investments and payments.

Can I invest more than 1.5 lakhs in VPF?

Equity Linked Savings Scheme (ELSS)

There is no limit on the amount that can be invested in any of these schemes, but the tax benefit is available only for Rs 1.5 lakh. ELSS comes with a lock-in period of 3 years and it is the lowest among all the options available under section 80C.

What is the 80C limit for FY 2020-21?

Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2020-21. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.

Is 80C removed in Budget 2021?

Income above Rs 15 lakh is taxed at 30 per cent. Individuals opting for taxation under new rates are not entitled to exemption/deductions including under Section 80C and 80D, LTC, housing rent allowance, the deduction for entertainment allowance, professional tax, and interest on self-occupied/vacant property.

Is 80C limit increased?

There were no changes in income tax slabs, PPF limit, Section 80C exemption. This comes despite experts asking for increased money in the hands of the salaried class to boost consumption. The Finance Minister, however, gave some relief to senior citizens.

How can I save tax on FY 2021 22?

How to Save Tax Apart from Section 80C?
  1. Section 80D: Medical Insurance Premium.
  2. Section 80G: Charitable Donations.
  3. Section 80GG: Rent towards Accommodation.
  4. Section 80D: Health Insurance.
  5. Section 80E: Education Loans.
  6. Section 80EE: Home Loans.
  7. Section 80TTA: Interest on Saving Accounts.
  8. HUF Receipts.

What is the new income tax slab for 2021 22?

2. Income Tax Rates for FY 2020-21 & FY 2021-22 for HUF, AOP, BOI, Other Artificial Juridical Person
Net Income RangeRate of Income Tax
Up to Rs. 2,50,000–
Rs. 2,50,000 to Rs. 5,00,0005%
Rs. 5,00,000 to Rs. 10,00,00020%
Above Rs. 10,00,00030%

What is the income tax slab for AY 2021 22?

Income tax slab for FY 2021-22
1ST OPTION2ND OPTION
Old Income Tax Slab RegimeNew Income Tax slab Regime
Rs 5,00,001 - Rs 10,00,00020%Rs 10,00,001 - Rs 12,50,000
Above Rs 10,00,00030%Rs 12,50,001 - Rs 15,00,000
Above Rs 15,00,000

Is PPF tax free in 2021?

Therefore, interest accumulated on PPF balance will still remain tax-free as contribution (to PPF) during any financial year will not exceed Rs. 2.5 lakh as prescribed by the amendment in Finance Bill 2021. Moreover, contribution to each provident fund needs to be seen separately and not in aggregate.

Is 80C applicable in new tax regime?

From FY 2020-21, an individual can continue with the old or existing tax regime and avail common deductions such as section 80C, section 80D etc. of the Income-tax Act, 1961. Else, she/he can opt for the new, concessional tax regime without any commonly availed deductions and tax exemptions.

Is PPF interest taxable 2021?

As announced in the Budget 2021, if deposits in Employees' Provident Fund (EPF) and Voluntary Provident Fund (VPF) by an employee exceed Rs 2.5 lakh in a financial year, then the interest earned on the contributions exceeding Rs 2.5 lakh will be taxable in the hands of an employee.

What is standard deduction u/s 16 IA for AY 2020-21?

Rs. 50,000

What is the rebate u/s 87A for AY 2020-21?

Rebate limit under section 87A for all the Financial years
Financial YearLimit on Total Taxable IncomeAmount of rebate allowed u/s 87A
2020-21Rs. 5,00,000Rs. 12,500
2019-20Rs. 5,00,000Rs. 12,500
2018-19Rs. 3,50,000Rs. 2,500
2017-18Rs. 3,50,000Rs. 2,500

What is 87A under income tax?

Section 87A was introduced in Finance Act 2003 which was changed from time to time. Presently an individual tax payer, who is resident of India for income tax purpose, is entitled to claim tax rebate up to Rs. 12,500 against his tax liability if your income does not exceed ₹5 lakh.

What is standard deduction u/s 16 A?

Standard Deduction From Salary under section 16 (ia)

Standard deduction is allowed under section 16ia of Income Tax Act. The standard deduction replaced transport allowance of Rs 19200 and medical reimbursement of Rs 15000. In the budget – 2018 our Finance Minister Jaitley introduced it.

Is there any proof required for claiming standard deduction of Rs 50000?

From Financial Year 2019-20 onwards, this standard deduction has been increased to Rs. 50,000 p.a. This deduction is allowed irrespective of the actual expense incurred by the employee. The employee is also not required to submit any bills/proofs to the employer for claiming this deduction.

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