Question: Can I Invest More Than 1.5 Lakhs In 80c?

Can I invest more than 1.5 lakhs in ELSS?

Tax saving mutual fund schemes or equity linked saving scheme (ELSS) are one of the most preferred options to save tax for most individuals.

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act..

How can I save tax if I earn 10 lakhs?

There are possible components for tax deductions which can help you save taxes:Annuity Plans.Child Tuition Fees.Employee National Pensions Scheme (NPS)Equity Linked Savings Scheme Investment.Fixed Deposits.Housing Loan Interest.Interest on Saving Account Deposits.Interest on the loan is taken for Residential House.More items…

How can I save tax if I earn 20 lakh?

These deductions include: Section 80C deduction of maximum Rs 1.5 lakh, section 80D deduction for health insurance premiums paid and other deductions for which a taxpayer is eligible, section 80TTA deduction for interest received from a saving account held with bank or post office etc.

Is FD tax free?

The interest earned under an FD is taxable under “income from other sources”. The amount invested under 80C of the Income Tax Act is exempt but interest earned under such investments is taxable. … It means if the interest earned from a company deposit exceeds ₹ 5,000, the investor is liable for a TDS it.

Is ELSS better than PPF?

PPF is suited for individuals who are absolutely risk-averse and can afford a 15-year lock-in period. Whereas those investors who are willing to take a moderate risk to earn higher returns can opt for ELSS. The best way to reduce risk in ELSS to its minimum is by staying invested for the long term.

Which is the best 80c investment?

This helps individuals to not only save tax, but also subsidise expenditure and help create a corpus.National Pension Scheme (NPS) … Term Deposits with a Bank or Post Office. … Sukanya Samriddhi Scheme. … Investment in Equity linked savings scheme (ELSS) … National Savings Certificate (NSC) … Housing Loan repayment. … Tuition Fee.More items…•

Can I deposit 10 lakhs in bank?

If you cash deposit more than Rs. 10 lakhs from your savings bank account – Bank will report to Income Tax authority. If you do fixed deposit more than Rs. 10 lakhs in a financial year – Bank will report to Income Tax authority.

Which ELSS is best to invest in 2020?

Top 10 Elss Mutual FundsFund NameCategoryRatingMirae Asset Tax Saver FundEquity5starQuant Tax Plan FundEquity5starBOI AXA Tax Advantage FundEquity5starAxis Long Term Equity FundEquity4star12 more rows

What 80c covers in income tax?

Subsections of Section 80CTax saving sectionsEligible investments for tax exemptionsSection 80CInvestments in Provident Funds such as EPF, PPF, etc., payment made towards life insurance premiums, Equity Linked Saving Schemes, payment made towards the principal sum of a home loan, SSY, NSC, SCSS, etc.4 more rows

Can I save tax more than 1.5 lakh?

The most popular avenue for tax-saving is section 80C of the Income Tax Act. Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount.

How much can I invest in 80c?

The maximum amount of deduction that can be claimed under section 80C is Rs 1.5 lakh for the current financial year i.e. FY2018-19. The section offers various investment options to the taxpayer which not only generate returns for him but can also be claimed as deduction while calculating total taxable income.

Where can I invest 1.5 lakhs?

5 Best Investment Plans in India 2020 Between Rs 1 – 2 LakhsPublic Provident Fund. The Public Provident Fund or PPF is a kind of investment tool which helps individuals to save their hard-earned money for over 15 years. … National Savings Certificates (VIII Issue) Account. … Fixed Deposits in Banks. … Mutual Funds. … National Savings Time Deposit Account.

How much tax do I pay on 10 lakhs?

Income between Rs 7.5 lakh and Rs 10 lakh will be taxed at 15 per cent. Income between Rs 10 lakh and Rs 12.5 lakh will be taxed at 20 per cent. Income earning between Rs 12.5 lakh and Rs 15 lakh will be taxed at 25 per cent. Income above Rs 15 lakh will continue to be taxed at 30 per cent.

How much tax should I pay for 7 lakhs?

A 10 per cent tax will be charged on income between Rs 5 and 7.5 lakh, 15 per cent, 20 per cent and 25 per cent on next Rs 2.5 lakh each and 30 per cent on income above Rs 15 lakh.” Currently, annual income up to Rs 2.5 lakh is exempt from income tax.

Why is ELSS tax free?

Better post-tax returns: Except PPF and NPS, ELSS offers better post-tax returns than other 80C investments because long term capital gains of up to Rs. 1 lakh a year from ELSS mutual funds are exempt from income tax and long-term capital gains above Rs. 1 lakh are taxed at 10%.