A proper understanding of section 80C of Income tax act will help you save much of your hard earned money.Before that a few sentences on income tax.Income we earn is subject to a tax. Govt levies a certain amount of money as income tax depending upon your income.This falls in different categories like male/female, senior citizens, salary slab etc. Income tax can be defined as all sources of income other than agricultural income which Central Government collects levies and shares it with the states. According to the Income Tax Act of 1961, people or groups are considered taxable when their income exceeds the maximum exemption in the prescribed limit. And they have to pay taxes as per the norms specified in the finance act. Eventhough govt. is taxing us, the regime encourages a few tax deductions, especially on long term savings like pension plans, retirement schemes etc.The Sec 80C of the Income Tax Act is the section that deals with these tax benefits.This section states that certain investments, (up to a max of 1 Lakh INR) are deductible from your income, this means that your income gets reduced by this investment amount (up to Rs. 1 Lakh), and you need not pay tax on it at all.

Qualifiers for the Tax Benefits
PF(Provident Fund)
PPF(Public Provident Fund)…Read More
VPF(Voluntary Provident Fund)
Life Insurance Policies
Home Loan Repayments
ELSS(Equity Linked Savings Schemes)…Read More

Various Income Tax Slabs for 2009-10(Budget related)

Related posts:

1. Income Tax revisions in 2011 Budget
2. Income Tax Revisions in Budget 2010
3. PPF-A Long Term Investment Scheme
4. “Mutual Funds” Know How
5. ELSS-Equity Linked Savings Scheme