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🔴Section 80C Income Tax Deductions in Hindi | Financial Advice to Save Money - YouTube
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You might already know,
that If your income exceeds
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by more than 2.5 Lakhs, then
you will come under taxable income
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And you will have to pay for
the tax and of course
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the tax that will be accumulated based
on 5 Lakhs. You will receive a
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rebate on that. That means you
will receive a discount on the tax
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And your tax payable will be 0
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That means you won't have to
worry until 5 Lakhs.
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What If I say that you won't
have to worry until 10 Lakhs either
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Even then you will pay 0 Tax,
then how will you feel.
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If you wish to know, how does
this magic happen
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Then you should watch this video
which was created last year.
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I will mention its link in
the description below
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I will mention the same in
the "i" button as well.
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In this video, I have mentioned
about what all deductions can you
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claim based on your Gross Income
of 10 Lakhs and modify it into
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Net Taxable Income of 5 Lakhs.
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i.e. How can you present
your income as less?
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And the tax that is imposed on
5 Lakhs, you will get a complete
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discount on that too & ultimately
your tax will be 0
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Then in today's video, I will
tell you about Section 80 C,
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because this is a really nice
section.
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This reduces your taxable income
directly by 1.5 Lakhs
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That means your income of 1.5 Lakhs,
won't be considered as your income.
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Then there won't be a tax on that
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But in order to avail that, you
need to invest in PPF, NPS,
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Sukanya Samridhi Yojana. You
don't have to do the entire thing.
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Only up to ₹ 1.5 Lakh in a year. But the question
is do we choose PPF or NPS
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Or Sukanya Samridhi Yojana.
Or without investing anything
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can we still claim for this
deduction? Yes, we can claim for it.
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Firstly, I will tell you
how can you claim for 1.5 Lakhs
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without any extra investment.
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If you still aren't able to claim,
then due to helplessness, which
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investment should be picked 1st
by you, which will benefit
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you the most. I will
also tell you that.
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So what's the delay, let's
start and If towards the end of
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the video, you will feel like
you have learned something
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then please hit the like button
to motivate us.
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[Intro Music]
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If you are a salaried employee,
then your EPF might be deducted
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and you should be aware that
how much ever contribution
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you have in the EPF. It can
be claimed under Section 80 C.
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This is the 1st strategy, wherein
without investing anything you
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can take advantage of
Section 80 C.
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I will tell you one more thing
If you weren't aware of it
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Investment of EPF comes under
the EEE Category.
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i.e Exempt, Exempt, Exempt
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Which means based on your
regular contribution that is
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processed, there is no tax on
that because it is claimed on 80C
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Interest that is earned on EPF,
which is between 8-9%, which is
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modified quite often. You don't have
to pay tax on that interest either.
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And finally, once you withdraw
your EPF, you don't have to pay
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for tax on that either. Hence, it comes
under the Exempt, Exempt, Exempt Category
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Another strategy, to apply for 80 C,
which can't be applied to everything.
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If you have applied for a home loan,
then the amount that you pay for the
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Principal Amount of the Home Loan,
you can claim that under Section 80 C.
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And the interest amount that you
pay for, is claimed under another section.
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Right now I'm talking about
Section 80 C. I shall cover other
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sections in the forthcoming videos.
And by the time you watch all the
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Sections, then you could label
yourself as an "Inexpensive CA"
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How Prince calls me as "Inexpensive
Kabir Singh"
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Now there are 2 investments, one is
your EPF contribution.
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Another one is your Home Loan's
Principal Payment which you are
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paying in a year. You can
take benefit of that in 80 C.
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The third one also won't be
applicable to everyone.
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But If it's applied to you,
then you should know.
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Let's assume, you have bought a house,
then to buy the house, the stamp
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duty and the registration charges
that you pay, you can claim that
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in Section 80 C as well.
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The fourth one might be applicable
on a lot of you'll
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You might have 2 kids or maybe 1,
you might have to send your
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kids or college. Then based on
the Tuition Fee that is provided
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in School or College. You can
claim a deduction of 80 C.
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By Tuition Fee, I mean there are
a lot of components in the Fee
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Booklet and the final amount that
you pay, I'm not talking about that
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fee. Based on the components,
the part of the Tuition Fee that you are
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paying, you can claim a deduction
only on that.
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This is allowed for 2 kids per
parent
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Let's assume, I got married
and I have 4 kids.
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Then I can claim a deduction for
the 2 kids and my wife If she
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is a taxpayer, then she can
claim a deduction for the
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remaining 2 kids.
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But, I as an individual tax
payer can't claim for deduction
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for more than 2 kids. And I'm
not married currently, If you
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were thinking about that.
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This benefit can be taken
by Divorced parents.
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But you need to ensure a
few things.
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For eg; If you pay for the
Tuition Fee while in School/College
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then you can claim for deduction.
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But are you providing it to
the Tuition Sir or Coaching Center Sir.
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Then it can't be claimed.
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If your kid is adopted, even then
you can claim for your deduction.
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There is no restriction.
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But the educational institution
needs to be located in India.
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If you are sending your kids
abroad for studies, then you can't
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claim deduction for that. If there
is Foreign Institution based in India.
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and the child is studying in India,
then the deduction can be claimed easily.
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5th which is almost applied on
everyone.
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And If it doesn't apply to you,
then you need to wonder because
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every person must have one Life
Insurance Policy
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Why don't you have it?
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The premium that is paid on
Life Insurance Policy within a year,
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even that can be claimed under
Section 80 C. But the only
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condition is that the premium
compared to your total sum insured
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should be 10 or less than that.
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This means that If you have
bought a Policy of 10 Lakhs,
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then your Premium Amount within
1 year should not exceed more
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than 1 Lakh.
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This is applicable to Term
Life Insurance.
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This is also applicable on
Endowment Plans and ULIPS
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Endowment Plan means a part of
your fund goes to Insurance and
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the remaining part goes to
Debt Instruments.
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And In ULIP, a part of your
fund goes to Insurance and the
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remaining goes to Equity.
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This Endowment Plans and ULIP,
both aren't good Life Insurance's
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I had explained you in the Term
Insurance Video, that If you
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wish to buy Life Insurance,
then Term Insurance is the best
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And you must watch the video.
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These are 5 ways, that might be
applicable on a lot of people
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To claim deduction on Section 80 C.
For which you won't have
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to invest anything additional. But
there is a possibility that
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after claiming for all these
deductions. Your 1.5 Lakh limit
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is still left. Now is the time
to invest in something
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wherein your tax can be saved.
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There are a lot of options
in such investments.
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Hence, I shall break it down
priority wise.
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That which investment should
you look at first.
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The first instrument based on this
is NPS. i.e National Pension System.
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I have kept this on 1st priority
based on 2 reasons.
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1st reason is that it comes under
Exempt, Exempt, Exempt Category.
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i.e Triple E. That means every year
that you contribute to NPS.
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You won't have any tax imposed
on that. Because you claim that
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on 80 C. Based on this, the returns
that you earn, it can also be tax-free.
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And in the end, once you withdraw it
after maturity.
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Then that money can also be
considered tax-free.
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There is a slight catch in this,
when you withdraw, you can withdraw
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60% of the total amount. That
means you will have to
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purchase Annuity of the
remaining 40%, based on which
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you start receiving monthly
pension.
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When you start receiving monthly
pension, the amount will be taxable.
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This comes under EEE Category until
the Withdrawal part. After withdrawal,
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once you start receiving the pension,
that is taxable.
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This is considered in the 1st priority,
only because of EEE.
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And another benefit is, that not
only in Section 80C but also you
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can claim an additional deduction
of INR 50,000/- under Section 80CCD
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Sub Section (IB).
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There is no such option in
any other investment.
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Wherein you can claim for an
additional INR 50,000/-
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Based on these two reasons,
I have given it 1st priority.
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Based on Section 80CCD:
In Sub Section 2, from your
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Employer Contribution you can
claim upto 10% of your Basic + DA Wages
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Oh! Yes, In NPS, Even your
Employer can contribute on
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voluntary basis. Then you can
get a deduction based on that too.
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But in regards to NPS, you need
to know a lot of things
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The lock-in period for this has
to be up to 60 years of age.
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That means you can't withdraw
until you don't turn 60.
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Yes, partial withdrawal is permitted.
But, the scheme's purpose
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will be defeated. If you are let
to withdraw the fund easily.
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If you wish to invest in NPS,
then you have to watch this video.
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Since this is being operated by
the Government and is a
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Retirement Planning Scheme. That means
the returns that you will receive
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will be extremely secure with
minimum risk and you can invest
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in equity as well. Then you can
expect a return between the
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range of 8-10%.
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Another investment is ELSS, i.e
Equity Linked Savings Scheme
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These are Mutual Funds, such as Mutual
Funds wherein the Government provides
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you a tax deduction based on
your investment, as per Section 80 C.
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These Mutual Funds come under
EET Category, i.e the investment
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that you do every year, you will
receive a deduction in Section 80 C
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The return that is earned on this,
the Government won't ask for tax on that.
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But when you finally withdraw,
whenever you withdraw.
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Then the entire amount will be
considered as part of your income.
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and there will be a tax imposed
on that
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If now you ask that there will
be a tax imposed on that,
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then why have we given high priority
to this.
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Because of 2 reasons, the first reason
is that you can earn more returns
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on this because these are Equity
Mutual Funds.
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And based on every investment under
Section 80 C, you can earn huge returns
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only from ELSS. Another reason is it
has a short lock-in period of 3 years.
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If we talk about NPS, then the amount
is locked until 60 years.
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PPF, which I will be talking about now,
you need to keep funds for 15 years.
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In Sukanya Samridhi Yojana, you will
have to keep funds for 21 years.
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Then it means that, If you don't
wish to block your money.
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and still take advantage of 80 C
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Then ELSS is a great option for you.
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Another investment is Sukanya Samridhi
Yojna, this account can be opened
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for a girl child. To fund her
expenses for wedding and education,
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when she grows up.
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I have created a video, based on
this too. You should watch it.
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If you wish to invest in this,
the interest that is earned on this
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varies around 8%.
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As of now, the economy is down,
there is a lockdown, there is Corona Virus.
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Due to this, the interest has
fallen. But it is around 8%
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And it changes quarterly.
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And the lock-in period, I have mentioned
which is until 21 years.
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Though, when the girl turns 18 years,
then 50% withdrawal will be allowed.
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And it comes under EEE Category,
that means every year that you
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invest in Sukanya Samridhi Yojna,
that will be tax-free, the return
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earned on that will be tax-free and
finally when you withdraw the entire
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amount, then how can the Government
impose a tax on an amount that you have
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accumulated for your daughter.
Just think!
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What to do when you don't have
a daughter, Start a PPF Account.
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In PPF Account, you will receive
a Lock-In period of 15 years.
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Return on that will be around
8% and this also comes under EEE Category.
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That means If you invest, then there
will be a deduction under 80 C
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If you earn a return, then the
tax will be free.
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If you withdraw, then too it
will be tax-free.
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And it is considered to be the
most secure investment.
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Let's assume, you have a court case
on you and the court is attaching
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your personal assets. Then, no one
can touch the funds kept in the PPF.
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You can also find an in-depth
video on PPF.
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Since we are talking about saving
money on taxes. Then, I will at least
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assume that you wish to file your
returns on time.
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Of course, saving money from here and
spending INR 10,000/- on late
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returns aren't a smart thing to do.
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And to file the return, you will
reserve your time and approach a CA.
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And you will get this work done.
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And If I tell you about me, then
I'm very lazy while doing this.
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And If you too become lazy,
then I will give you a better solution.
[726]
Labour Law Advisor has tied up
with Tax2win, wherein you will
[731]
find Better quality CA and will
find options at better prices
[733]
to file tax returns, that in a
couple of minutes at the comfort
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of your home.
[737]
You don't have to do anything,
go to the website of Tax2win.
[740]
Select your plan, whether you
are a Salaried employee, You need
[744]
to file a return through Form 16
or If you have a Business Income
[746]
or something else.
[747]
In regards to your income, there
will be extremely simple questions,
[751]
that you won't feel lazy.
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You can even talk to the
CA on the phone and the CA
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will file your return in a
couple of minutes.
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And you might feel that you
haven't took any effort.
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There is one more thing,
since this video is all about
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Saving Money. If you directly visit
the website of Tax2win.
[766]
Then you will already find
better prices there.
[769]
But, the link that I have mentioned
below. If you go through that.
[772]
Then you will find the logo of
Labour Law Advisor.
[775]
That is a special page which Tax2win
has specially curated for LLA Subscribers
[780]
wherein you find a more discounted
option to file your returns.
[784]
Coupon code is also mentioned there.
[786]
Then If you need a quality return,
within a minimum time and a
[790]
minimum price and need to
file it. Then the link is
[793]
in the description below.
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Enjoy the video for the
time being
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And now I'm going to state some
ETE Options.
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ETE means, Exempted, Taxable, Exempted.
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That means, If you invest in this
every year, it will be exempted.
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You will receive a deduction
based on Section 80 C
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But the interest that you will
earn every year, it will
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calculated on your interest
income and tax will be imposed on that.
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That means, while filing ITR, you
need to calculate the interest of
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every year and show it. And the
E that is mentioned towards the end
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which states Exempted, the money
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that you withdraw, you
won't have to pay tax on that.
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So If you understand the meaning of
this, you are paying on your Interest
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Income. You are not paying tax on
your Investment and Withdrawal.
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Then there are options as 5 Year FD,
i.e. FD where it is compulsory to
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have a 5-year lock-in. You
can claim your deductions there.
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Post Office Savings A/C which is
of 5 years, you can claim a
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deduction on that too.
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National Savings Certificate which is
of 5 years, you can claim that too.
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And Senior Citizens Savings Scheme,
there is a video on that too.
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You can claim that as well.
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But the thing that needs to be
considered is, you need to keep a
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a lock-in of 5 years.
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And why is it kept as a last
priority, because these have
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become very old-fashioned.
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Although, Senior Citizens Savings
Scheme is still more in use these days.
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compared to others. But when
there are much better things available,
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is the reason why people don't
prefer 5 year FD or Post Office Savings A/C
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Because the return that is earned
is extremely less and there is
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a tax imposed on the return as well.
Just think, If you are earning 7-8%
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returns and tax is imposed on that
too, then you are earning 5-6% returns.
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which is even worse. 5% is the
inflation rate. If you are earning
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5% as returns, then your money
isn't growing.
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This is the reason why I told in
the start. There are a lot of
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investments, you need to pay attention
that which one of them should
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be prioritized, wherein you can earn
huge returns and save a lot of tax too.
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If you liked the video, then
please hit the Like Button.
[912]
and motivate us so that I can
get more strategies to save your
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Income Tax.
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Until then, I will meet you
another time in a new video
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And please allow me that I
stop this mimicry of Salman Khan
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And Sleep.
It's too late already.
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