Budget in a minute: What is Section 80C of income tax? Zee Business Managing Editor Anil Singhvi explains
Budget in a minute: Every year as the government gets ready to present Union Budget, the common man eagerly waits for income tax sops to be announced. This time is no different.
Budget in a minute: Every year as the government gets ready to present Union Budget, the common man eagerly waits for income tax sops to be announced. This time is no different. The biggest attraction here is Section 80C which allows taxpayers to save up to Rs 1.5 lakh by investing money in different schemes. This year, several experts are hoping for a change in the section. But, what is it? How do you save money under it? Zee Business Managing Editor Anil Singhvi is here to explain.
What is Section 80C of income tax?
Zee Business Managing Editor Anil Singhvi explains that a lot of people think that a part of their salary goes towards taxes, which does. However, there is a way to save this outgo of money and Section 80C is one of the best ways to save it. He informs that taxpayers can save up to Rs 1.5 lakh under Section 80C.
How to save income tax under Section 80C?
There are several schemes under Section 80C of the Income Tax Act in which you invest and save money, explained Anil Singhvi. He said that you can put money in life insurance, Provident Fund, Public Provident Fund and several other instruments.
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Singhvi encouraged investors to put money in whichever of these schemes they like. He said that people can also save the principal paid on home loan under Section 80C. He urged income tax payers to invest extra money they have in any of these instruments.
What is the limit?
As of now, taxpayers can save up to Rs 1.5 lakh under Section 80C but the government is expected to increase this limit in the upcoming budget.
The Union Budget 2020 will be presented in the parliament by Finance Minister Nirmala Sitharaman on February 1. This will be her second Budget presentation as the Finance Minister. You can catch all the live updates of Budget 2020 on #BUDGET2020ZEE.
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