Life Insurance - Kotak Life Insurance Company in India
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

What is Section 80C - Explained in Detail
  • 31st Jan 2022 |
  • 690

Taxes are an important part of our country’s economy, making up for a significant share of the government’s tax budget, which is used to provide basic services to all the citizens. People who earn more than a specified number must therefore pay taxes according to the appropriate tax slabs.

Section 80C deduction Income Tax Act allows individuals to deduct expenditures for life insurance, fixed deposit accounts, pension funds, university fees, and the construction/purchase of residential buildings.

Tax Exemption Under 80C

Hindu Undivided Families (HUFs) and individuals are subject to tax breaks under section 80C of the Income Tax Act, covering a wide range of expenses. For instance, the 80C insurance premium limit is a provision that proves to be highly beneficial for taxpayers. Eligible taxpayers can seek deductions of up to ₹1.5 lakh per year under section 80C, which is a combination of deductions allowed under sections 80C, 80CCC, and 80CCD.

Tax Exemption Under 80C Sub-Sections

The 80C tax exemption list as per the Income Tax Act, 1961 is as follows:

  • Section 80CCC

Deduction under 80CCC allows for tax deductions on pension fund investments. The provision considers pension fund from any company, and allows for a maximum deduction of ₹1.5 lakh. However, individual taxpayers are the only ones who may seek this deduction.

  • Section 80CC

This section is designed to encourage people to save their hard-earned money by offering an incentive to participate in pension systems that have been approved by the Central Government. Payments made by a person and their employer are both tax deductible, as long as the deduction is less than 10% of the person’s income. This deduction is only available to individual taxpayers.

  • Section 80CCF

This section, that is available to both Hindu Undivided Families and Individuals, offers provision for tax breaks on long-term infrastructure bonds which have been authorized by the government. This section allows for a max deduction of ₹20,000.

  • Section 80CCG

Section 80CCG of the Income Tax Act allows for maximum deductions of ₹25,000 per year for certain individuals who reside in India. Deductions are allowed for investments in government-approved equity savings plans, up to a maximum of 50 percent of the amount invested.

Insurance & 80C Deduction Income Tax Act

Life insurance plans are commonly utilized to receive a tax deduction under section 80C of the Income Tax Act of 1961. Amounts up to ₹1,50,000 can be withdrawn from the 80C insurance premium limit (₹1 lakh for the fiscal year 2014-15). It is a common misperception that all premiums paid on life insurance plans are deductible under section 80C of the Income Tax Act of 1961, and that the full amount is deductible.

80C Tax Exemption List & Other Investment Tools

  • ELSS

Some mutual fund plans are specifically designed to help you save money on taxes. Under section 80C of the Income Tax Act, equity-linked savings schemes, or ELSS as they are commonly known, help shareholders to seek tax deductions up to ₹1.5 lakh.

  • PPF

The interest is compounded annually, and the program has a 15-year maturity time. The minimum contribution to a PPF account is ₹500, and the highest contribution is ₹1.5 lakh. Section 80C of the Income Tax Act allows you to deduct the sum you donate to your PPF.

To create wealth and savings, it is vital to pay your taxes on time and claim any tax exemptions under 80C. With government assistance and a thorough understanding of your needs and ultimate financial goals, you can avail maximum tax benefits from the different deduction and exemptions offered under the various sections of the Income Tax Act. One prudent decision can empower you to save and invest your money in the right way.

Kotak Guaranteed Savings Plan

Features

  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • @ Guaranteed Loyalty Additions
  • Accrued Guaranteed@ Additions

Ref. No. KLI/22-23/E-BB/490

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Tax Saving Tips: Best Ways to Save Income Tax for 2021

Pradhan Mantri Suraksha Bima Yojana

Section 44AD of Income Tax Act for AY 2020-21

Impact of GST on Life Insurance in India

Why is Form 16 Important?

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

Why January Is an Important Month for Saving Tax?

How To Save Tax Using Life Insurance?

Penalty For Late Filing TDS Return

Income Tax Filing For NRI in India

How to View 26AS and Download Form 26AS Online?

What is the Difference Direct Tax and Indirect Tax

Save Income Tax by 31st March: Here Is a Checklist

How to Pay Advance Tax Online in India

Income Tax Exemption for Disabled

What Is Advance Tax and How Is It Calculated?

5 Popular Tax-Saving Schemes in India

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

Things to Do After Filing Income Tax Returns

A Complete Guide for Filing ITR 3 Form

Union Budget Highlights – 1st February 2022

Income Tax Filing Using Multiple Form 16

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

How to Save Tax on Salary Arrears?

How to Claim TDS Refund for Excess TDS Deduction

What is TDS Exemption Limit?

How to File Income Tax Return without Form 16

Problems People Face with Tax Returns after a Job Change

Tax Saving Guide for 2019-20

What is the Difference between Form 16 and Form 16A?

5 Unusual Investments You Didn't Know for Saving Taxes in India

How can I get Form 16B from traces?

Are Financial Planning and Tax Planning the Same Thing?

What is TDS Slab?

Tax Planning and Tax Benefits of Life Insurance

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

All about TDS Payment Online & Due Dates

All about TDS on Salary under Section 192 – Kotak Life

Types of Riders in Insurance Policy

Saving Income tax in 2017 - 18

धारा 80डी आयकर अधिनियम, 1961

What is Challan 280? How to Pay your Income Tax Online with Challan 280?

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2020-21 & 2021-22

E-Filing of Income Tax Returns in India

What Investment Options Come with Tax Incentives?

How to e file ITR on Income Tax Government Portal

ITR-6: Guide to filing ITR-6 Form online

Tax-Savings Investments and Options in India

All about Online Income Tax Calculator

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

How to Get Form 16?

How to File ITR Online

The Difference Between Gross Income & Total Income in Calculating Income Tax

What is Form 16B?

How Much Money This Budget 2019 Can Help You Save

How to Download Form 16?

Role of Life Insurance in Your Financial Portfolio

Tax Season Is Coming- Know How to Save Tax

Tax Benefit of Investing in Term Plan

How to View 26AS and Download Form 26AS Online

How to Check Income Tax Refund Status Online in India

Tax Saving for Self Employed in India

Financial Benefits and Government Schemes Every Woman in India Should Know

TDS Due Dates of FY 2020-21 For Return Filing

Can You Get Term Insurance Without Income Proof?

What is Form 16A?

What is the Percentage of Tax Deducted at Source (TDS)?

Investing Lump Sum Amount

How to File Income Tax Return - Everything You Need To Know

When Should TDS be Deducted and Who is Liable to Deduct it?

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

Income Tax Exemption for Physically Handicapped Dependent

Tax Deductions You MUST Know

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

9 Income Tax Myths That Could Cost You Money while Filing returns

What To Do If Your TDS Is Not Deposited With The Government?

How do I Calculate My Term Insurance Premium

What is Salary Protection Insurance and Why You Need It

What is Form 26AS - All You Need To Know

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

Tax Saving Options other than Section 80C

Guaranteed Return Plans-Why is it a must for you?

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

Income Tax Deductions for Disabled Person Under Section 80U

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

What is Section 10D of the Income Tax Act?

Presumptive Taxation for Business and Profession

9 Point Guide on how to File Income Tax Return Online

How to File Form 16 for Salaried Employees?

Section 80G of Income Tax Act

What is Section 80C Deduction Limit?

Insurance and Endowment: Everything You Need to Know!

Types of Income Tax Return (ITR) Forms

How to File Income Tax Return for First Time Tax Payers

7 Important Things to Remember While Investing in a Savings Investment Plan

What is Section 80CCC of the Income Tax Act 1961

What is ITR & How to File Income Tax Return

Budget 2019: Impact on the Common Man in India

Difference between Section 80C, 80CCC, 80CCD & 80D

Income Tax Deductions Under Section 80C

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

Understanding Tax Exemptions in ULIP (Old and New)

Sub-sections Under Section 80C of the Income Tax Act, 1961

Financial Planning and Best investment options for Housewives

What are the Different Types of Taxes in India?

Tax Benefits of ULIP Plans Available for NRIs

Interest Imposed Under Section 234A, 234B and 234C

Tax Structure in India

How to Save Income Tax with Insurance

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

Top 8 Tax-Saving Methods in India- Budget Planning

What is the TDS Rate on Salary?

How to e-Verify your Income Tax Return

Tax-Free Income in India

How To Save Tax Better with 80C

How to Check Income Tax Returns Status Onine?

Tax Exemption and Scope of Coverage

How to File TDS Return?

A Comprehensive Guide to Understand the ITR 7 Form

Why Tax Planning Should Be an All-year Round Activity

All You Need to Know About Section 80C

How to save tax for salaried person?

धारा 80सी आयकर अधिनियम, 1961

How to file Form 16 online?

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

What is TDS Refund Process?

Do Beneficiaries Pay Taxes on Life Insurance?

How to Check Income Tax Refund Status Online in India

ITR 1: Sahaj Form

What are Direct Taxes? How to Avoid being Overtaxed?

What is Section 80C Deduction?

Section 16 of the Income Tax Act (ITA), 1961

Form 16, Form 16A, and Form 16B?

Income Tax Deduction Under Section 80CCC In India

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

Tax Benefits for Startups in India

Guide for Tax Calculation on your Salary

What is Tax Deduction at Source (TDS)?

Section 80C Deductions as per Income Tax Act, 1961

What is ITR 5 Form and How to File ITR 5?

Tax Saving Options for Salaried Employees

How to File Form 10E for Tax Relief on Salary Arrears?

Section 80E: Tax Exemption on Interest on Education Loan

List of Important Income Tax FAQs

Home Investment Plan to Buy Dream Home

Income Tax Benefits for Doctors

Tips to plan your savings in 2019

ITR 2 Form – Complete Guide

आयकर स्लैब 2021-2022

Have You Considered Term Insurance a Part of Your Tax Planning?