PERSONAL TAX PLANNING

B.com(
Hons),
semeste
Faculty: Submitted by:
r III
Mr.Varun Pawar HARSH JAIN
Rno:213137
 B.Com (H), Semester 3, 2ndYear, Academic
Year 2022-23

Subject: Personal Tax

Planning
Skill Enhancement Course: BCH 3.5 (d)

Project for the Session 2022-23

Name of the student: HARSH JAIN

Section: B
Roll Number:213137
Course: B.Com(H) BCH 3.5 (d), Semester 3, 2nd Year,

(Academic Year 2022-23)

Topic of the Project work: section 80C
 Acknowledgement
I would like to acknowledge that my assignment has been
completed and I am ensuring that this was done by me and not
copied.
In this accomplishment, I would like to express my sincere
thanks to our Faculty of Commerce Department, Mr. Varun
Panwar for his valuable guidance and support in completing
my project. Your valuable guidance and suggestions helped
me in various phases of the completion of this project.
I would also like to express my gratitude towards our
Principal Sir, Prof. Rabi Narayan Kar for giving me this great
opportunity to do a project on section 80C Without their
support and suggestions, this project would not have been
completed.
HARSH JAIN
What is Section 80C?

Section 80C of the Income Tax Act came into effect on 1

April 2006. It basically allows certain expenditures and
investments to be exempt from tax. If you plan your
investments well and spread them intelligently across
different investments such as PPF, NSC, etc., you can claim
deductions up to Rs.1.5 lakh, thereby lowering your tax
liability.

Union Budget 2022 update regarding Section 80C:

Finance Minister Nirmala Sitharaman during the recently

concluded Union Budget 2022 did not make any changes to
the existing rules regarding Section 80C. Hence, if you are
following the old tax regime, you will be able to avail yourself
of deductions of up to Rs.1.5 lakh. The deduction rules do not
apply if you have opted for the new tax regime option.
Deductions on Investments under Section 80C of the
Income Tax Act

Here are the various investments you can make to save tax
under Section 80C of the Income Tax Act:

Minimum lock-in
Investment options Rate of interest
period

Till the age of 60

National Pension System (NPS) 8% to 10%
years

Equity Linked Savings Scheme Ranging between 12% and

3 years
(ELSS) 15%

Public Provident Fund (PPF) 15 years 7.1%

Senior Citizen Savings Scheme

5 years 7.40%
(SCSS)

National Savings Certificate

5 years 6.8%
(NSC)

Ranging between 8% and

Unit Linked Insurance Plan 5 years
10%

Fixed Deposit 5 years Up to 8.40%

Sukanya Samriddhi Yojana 21 years 7.6%

Provident Fund: Provident Fund is automatically subtracted

from your monthly salary. An employee and his/her employer
both contribute towards PF. While the contribution made by
the employer is exempt from tax, the contribution made by the
employee is eligible for deductions under Section 80C of the
Income Tax Act. Employees are also allowed to make
voluntary contributions towards the Provident Fund Account.
Voluntary Provident Fund or VPF as it is called, is also
eligible for tax deductions under Section 80C of the Income
Tax Act.

Public Provident Fund: Public Provident Fund is a popular

investment instrument as it offers assured returns. Interest is
compounded on an annual basis and the maturity period of the
scheme is 15 years. The least that you can contribute towards
PPF is Rs.500 and the maximum contribution allowed is
Rs.1.5 lakh. The amount you contribute towards PPF is
eligible for tax deductions under Section 80C of the Income
Tax Act.

Premium payments towards life insurance: If you have

purchased a Life Insurance Policy for yourself, your children
or your spouse, the premiums you pay towards it are eligible
for deductions under Section 80C of the Income Tax Act. In
case you have multiple life insurance policies from different
insurance providers, you can club all the premiums and claim
deductions up to Rs.1.5 lakh p.a.
Equity Linked Savings Scheme (ELSS): Certain mutual
fund schemes have been designed especially for the purpose
of tax savings. Equity Linked Savings Schemes, or ELSSs as
they are generally called, allow investors to claim tax
deductions to the extent of Rs.1.5 lakh under Section 80C of
the Income Tax Act.

National Savings Certificate: National Savings Certificate or

NSC as it is known in its abbreviated form, is one of the most
popular tax-saving instruments available to Indian citizens.
The maturity period of the scheme is five years and 10 years.
The interest in this scheme is compounded semi-annually. The
minimum amount of money that you can invest in this
certificate is Rs.100 and there is no maximum limit on the
amount of investment you can make in NSC. The amount you
invest in National Savings Certificate is eligible for tax
deductions under Section 80C of the Income Tax Act, subject
to a maximum of Rs.1.5 lakh per financial year.

Sukanya Samriddhi Scheme: Individuals can open a

Sukanya Samriddhi account for a girl child anytime from the
date of her birth to the day she turns 10 years old. The
minimum amount that you can invest in the Sukanya
Samriddhi scheme is Rs.1,000 and the maximum is limited to
Rs.1.5 lakh in a financial year. The interest in this account is
calculated on an annual basis and compounded on an annual
basis too. The interest you accrue through this scheme is
eligible for tax deductions under Section 80C of the Income
Tax Act.
Unit Linked Insurance Plans (ULIPs): These insurance
plans offer coverage to the policyholder and provide
substantial returns in the long term. One of the main reasons
why these plans have become so popular in recent times is the
fact that they not only help in saving money, but also provide
tax benefits under Section 80C of the Income Tax Act.

Repayment of home loan principal amount: The EMI

amount that goes towards the repayment of the principal
amount on your home loan is also eligible for tax deductions
under Section 80C of the Income Tax Act. The repayment of
your home loan amount has two components, viz. the
principal amount and the interest. While the interest part of
the repayment cannot be claimed as deduction under Section
80C of the Income Tax Act, the repayment of the principal
amount certainly is.

Registration charges and stamp duty for a home/property:

In case you purchase a home or a property and pay for stamp
duty and registration, these amounts can be claimed as tax
deductions under Section 80C of the Income Tax Act.

Infrastructure bonds: Infra bonds as they are commonly

called, Infrastructure bonds are issued not by the government
but by infrastructure companies. In case you invest in these
bonds, you can claim tax deductions up to Rs.1.5 lakh under
Section 80C of the Income Tax Act.
NABARD Rural Bonds: NABARD, or the National Bank for
Agriculture and Rural Development, offers two kinds of
bonds, viz. Bhavishya Nirman Bonds and NABARD Rural
Bonds. However, only the latter qualifies for tax deductions
under Section 80C of the Income Tax Act, and the maximum
amount that you can claim as deductions is Rs.1.5 lakh.

Senior Citizen Savings Scheme: The Senior Citizen Savings

Scheme is the best possible investment scheme for senior
citizens. The returns are relatively lucrative in comparison
with other schemes, and the interest is paid on a quarterly
basis. Individuals who are above 60 years of age can invest in
this scheme and claim tax benefits up to Rs.1.5 lakh under
Section 80C of the Income Tax Act.

Five-year Post Office Time Deposit Scheme: Post office

deposit schemes are a lot like fixed deposits offered by banks.
The duration of these schemes could range from one year to
five years, but only the interest earned on five-year post office
time deposit schemes are eligible for tax deductions under
Section 80C of the Income Tax Act.
When should you Invest to Claim Deductions under
Section 80C of the Income Tax Act?

Most people tend to start making investments towards the end

of a financial year just to claim tax deductions. Tax experts
suggest that investments are best when made at the start of a
financial year as doing so would not only mean that you are
making informed decisions, but also ensuring that you earn
the interest for the whole year from April to March.
Tha
nk
you