Kotak Life
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

All You Need to Know About Section 80C

All You Need to Know About Section 80C
  • 24th Sep 2021 |
  • 1,021

Visualise this:

With each fiscal year, you resist doing tax-saving activities, realising at the end of the year that you now have to invest to save taxes. Upon realising this, you decide to visit or call your bank but get befuddled by the host of tax-saving products offered. Moreover, being a non-finance person, you find it challenging to understand the different financial jargons.

Does this seem too relatable? Well, fret not because you won’t be the only one who gets inundated with such information. However, it is of utmost importance for you to comprehend the nitty-gritty of tax planning, as this assists in saving a substantial amount of your income.

Cracking

All this brings us to the discussion about Section 80C which is the most common deduction available under the Income Tax Act. Here is how it works and helps an individual save tax in a financial year.

The Provision Most Valued by Taxpayers

The Government of India levies taxes on incomes generated in the country per the regulations under the Income Tax Act, 1961. This tax is imposed on individuals, Hindu Undivided Families (HUF), firms, companies, LLPs, a body of individuals, or other artificial juridical people. However, the Income Tax Act also puts forth specific tax exemptions to reduce these liabilities, which aid taxpayers to save a substantial amount on their income tax payments. These exemptions fall under Section 80C of the Act.


Under this section, you get multiple instruments to avail a collective tax saving of a sizable quantum. With the provisions for savings under 80C, you can save up to ₹1,50,000 + ₹50,000 from various schemes. However, do note, the tax deductions under Section 80C are applicable only for individuals or members of HUF and are not open to companies, partnerships, or other corporate bodies.

10 Tax-saving Deductions Under Section 80C

Section 80C of the Income Tax Act enables you to reduce your taxable income by ₹1.5 lacs in a financial year by offering options to invest your money in different tax-saving instruments. Consider this, for an income of ₹10 lacs, the income tax you would pay amounts to ~₹1.17 lacs. However, if you opt for investment under 80C tax-saving instruments mentioned in the following section, your reduced taxable income would be ₹8.5 lacs, cutting down your income tax liability to ₹85,800. Now, you can comprehend how significant a savings of ₹31,200 is!

Following are the 10 instruments which qualify for deductions under 80C. They differ considerably in risk, returns, and maturity, hence, you should choose the one that suits your needs the best.

  • Equity Linked Saving Scheme (ELSS)
  • National Pension Scheme (NPS)
  • Life Insurance Premiums
  • Public Provident Fund (PPF)
  • Five-Year Bank Deposit
  • Unit-Linked Insurance Plans (ULIPs)
  • Employees’ Provident Fund (EPF)
  • Sukanya Samriddhi Yojana
  • Senior Citizens Savings Scheme
  • National Savings Certificate

Everything to know about Accidental Insurance Policy - Infographic

Payments Eligible For Tax-Saving Under Section 80C

Apart from the tax-saving investments , there are a few payments that qualify for tax saving deductions under Section 80C. To understand these options, ask yourself the following questions:

1.Do you own a Life Insurance Policy?

If yes, the annual premium paid for your life insurance or in the name of your wife and children is an eligible tax-saving payment under Section 80C. However, it is valid only if the premium amounts to less than 10% of the sum assured. For instance, if you pay a premium of ₹1,00,000 on a life insurance policy with a sum assured of ₹5,00,000, you will be eligible to claim a deduction of ₹50,000 (10% of ₹5,00,000), and not for the entire premium of ₹1,00,000.

2.Do you have children pursuing education?

If yes, the tuition fee (up to ₹1.5 lacs) for two of your children falls in the 80C deduction list. The fee can be paid for a full-time course from any school, college, university or educational institute situated in India.

3. Do you need to repay a home loan?

If yes, the repayment of the principal of loans taken to buy or construct a residential property qualifies for an 80C deduction.

In a nutshell, no matter what you earn, you can save a considerable amount by strategically planning your investment. With the above-mentioned tax-saving investments and deductions under Section 80C, you can explore endless possibilities payment can be significantly reduced. So, before filing your income tax returns , double-check the provisions to get the most out of your 80C deductions.

Kotak e-Term Plan

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Planning For Son or Daughter's Wedding

6 Reasons That Make Term Insurance a Must Buy

Increasing Term Insurance and Riders

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Why Buy Term Insurance Plan With a High Cover?

Why is it important to buy term insurance plan?

Term Plans are Definitely Cheaper than You Think!

Why does every working woman need life insurance?

What is a short term insurance policy?

Protection for your family

Should You Have Multiple Term Life Insurance Policies?

Can I Extend the Tenure of My Term Insurance Plan?

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Why Buy Term Insurance Even at Rising Rates?

Why Should New Parents Buy Term Life Insurance?

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Is It Good To Buy A Term Insurance Plan In 2022?

What is Term Insurance - A Complete Guide

Can You Increase Your Term Insurance Cover?

Is a Term Insurance Policy Portable?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

How Much Cover Should I Take In A Term Plan?

5 Reasons to Buy Term Insurance When You are in Your 30s

Eligibility Criteria for Buying Term Insurance in India

Can I Make Changes to My Term Insurance Policy Post Purchase?

Does Term Insurance Cover Accidental Death?

Should You Buy a Term Plan After 40?

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

9 Most Frequently Asked Questions on Term Insurance

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Do I Need to Give a Medical Test for Term Insurance in India?

All you need to Know about Term Insurance Plans for Housewives

Best Investment Plans for Children - Secure Your Child's Future

Do Beneficiaries Pay Taxes on Term Insurance?

Why Term Plan Should Be The First Step To Securing Your Future?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

10-Year Term Life Insurance Policy - Explained in Detail

Is term Insurance Needed for People With No Dependents?

Term Insurance with Critical Illness

How To Choose the Right Term Insurance Plan?

What Should You opt for - Limited or Premium Pay?

How Much Term Insurance Do I Need

Gift Your Father A Term Insurance Plan This Father's Day

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Understanding Term Insurance Riders

Difference between Term Insurance and Life Insurance

Individual Life Insurance vs. Group Term Life Insurance

Should Youngsters, Working Couples Buy Term Insurance Plans?

Why Should You Not Take A Term Plan Without Medical Test in India?

Insuring Protection Against Death With Death Insurance Rider

What are incremental term insurance plans?

Is Life Insurance Investment Worthy Enough

How To Calculate The Amount Of Term Life Insurance You Need?

How Not To Get Your Term Insurance Claim Rejected

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Top 3 Reasons Why You Should Buy A Term Plan Now

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Term Insurance Calculator - Everythng You Need To Know

How to Buy 1 Crore Life Insurance Policy Without Medical Test

How Does Term Life Insurance Work? Learn the Benefits

8 Factors to consider before choosing a Critical Illness Insurance

What Types of Deaths Are Covered in a Term Insurance Plan?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Term Insurance – Why You Must Include In Your Financial Planning?

Is There Any Tax Benefit on Term Insurance?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

How to Identify Term Insurance According to Your Needs?

Comparing Term Plans – What Should You Look Out For

How to Compare Term Insurance Online

Why Married People Should Buy Term Insurance Under MWP Act?

Why 1 Cr Term Plan Is Necessary For Family?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Calculating Term Insurance Premium

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Ensure Protection Against Death, Disease & Disability With Life Insurance

How to Surrender Term Life Insurance When you have No Liabilities

6 Types of Death not covered in Term Insurance Plan

Why Should You Buy Term Insurance in 2022?

What Is a Renewable Term Insurance Policy?

Why Term Insurance Is Important in times of COVID-19?

All About Term Insurance Inbuilt Coverage

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Term Insurance Plans and Policies for Smokers

Know How to Invest at Every Age for Larger Returns

9 Ways to Help Family Members in Financial Trouble

Advantages & Disadvantages of Term Insurance in India

While Buying Term Insurance Compare Features, Not Just Premiums

4 Methods to Calculate How Much Term Insurance You Need

Tax Benefits of Term Insurance in India

8 Things To Do After Buying Term Insurance

Different Types of Protection Plans

5 Things To Consider While Buying Term Insurance Plan

Insuring Against Accidents with an Accidental Death Insurance Rider

5 Benefits of Early Retirement Planning

Steps on How to Buy Term Insurance Online

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Term Plan with Spouse Cover

Term Insurance: What Happens When You Don’t Pay Your Premiums?

4 Things To Expect From Your Term Insurance Plan in India

4 Reasons Why You Need Critical Illness Cover

Insurance Policy for Housewife In India

Busting Myths and Facts About Term Insurance Policies

Can Term Insurance Plans Be Purchased As A Gift?

Term Insurance Age Limit – Term Plan for All Age Groups

Do You Need Term Insurance Cover After Retirement?

What All Documents Required For Term Insurance In India?

Can I Get Term Insurance on Behalf of My Spouse?

Reasons You Need Term Insurance Plan as a Self-Employed Person

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

What Is the Correct Age to Buy Term Insurance?

Planning For Children's Future

Buying A Term Insurance Plan? Take These Factors into Account

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Why Term Insurance Is Better Than ULIP?

Why Premium Amount for Term Insurance is So Low?

What Are the Best Term Insurance Plans for Planning Retirement?

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Make Your Online Term Plan Your Familys Monthly Payout

Importance of Term Insurance at Every Stage of Your Life

5 Term Insurance Benefits for Single Women

How To Change The Nominee in Term Insurance?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

How To Choose the Right Sum Assured Under a Term Plan?

Endowment Plans vs Term Plans: Understanding the difference

Insuring yourself against Ill Health with a Critical Illness Rider

What are the Documents Required for Term Insurance Plan?

Cost of Term Insurance Likely to Increase Soon

Advantages of Buying Term Insurance in Your 50s

Insuring Against Disability With Disability Insurance Rider

Why Should You Add a Rider to a Term Insurance Plan?

Term Insurance: Smokers vs Non-Smokers

Can I Buy Term Insurance for a COVID-19 Patient?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Choosing Riders for Insurance Plans

Everything About Claim Settlement Ratio for Term Insurance

8 Benefits of Term Insurance You Should Know

How Much Term Life Insurance Cover Do I Need in India?

Can Senior Citizens Avail Term Insurance?

Term Insurance Basics You Should Know

Is Term Life Insurance Plan an Investment or Expense?

What Should Be The Duration Of Your Term Plan in India?

Is Group Term Life Insurance Provided By Employer Sufficient?

Term Insurance With Riders In India

What Are Insurance Riders and How to Choose Them in a Term Plan?

What is Critical Illness Policy

How Does A Term Life Insurance Work in India?

Is ₹1 Crore Term Insurance Good Enough Cover?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Term Life Insurance Plan for Smokers vs Non-Smokers

What is Insurance Premium - A Detailed Guide

Which Death Type Does Your Term Plan Not Cover?

What Happens if you Hide Facts in your Term Insurance?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Why should single women purchase term life insurance?

Tips to Choose the Right Term Period for Term Insurance Plan

Different Types of Premium in Term Insurance

Make Your Online Term Plan Your Family's Monthly Pay Cheque