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

Can we invest more than 1.5 lakhs in PPF?

The maximum limit of Rs 1.5 lakh implies that you cannot claim deduction on full amount when the sum of your total contribution in PPF account and other schemes allowed under Section 80 is more than Rs 1.5 lakh in a financial year..

Can I invest more than 1.5 lakhs in ELSS?

First, when you plan to invest more than Rs. 1.5 lakh in ELSS funds, it is important to remember that you can reduce your income only by up to Rs. 1.5 lakh to save tax. … If your long-term capital gain (LTCG) on an ELSS fund exceeds Rs 1 lakh annually, 10% of that amount will be taxed.

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.

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.

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?

Best Tax Saving Investments Under 80CELSS (Equity Linked Saving Scheme) Lock-In: 3 years. Returns: 15-18% (Based on the last 5 years) … Public Provident Fund (PPF) Lock-In: 15 years. Return: 8% … Bank FDs. Lock-In: 5 Years. Returns: 6-7% … ULIPs. Lock-In: 5 Years (Minimum) Return: 11-13% (Last 5 years)

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.

How can I save tax if I earn 15 lakh?

These can be: deductions under section 80C for maximum of Rs 1.5 lakh by investing in specified financial instruments, under section 80D for health insurance premium paid for self, spouse, dependent children and parents, under section 80TTA for maximum up to Rs 10,000 on the interest received from savings account held …

Are all 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%.

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

Is FD tax free?

Tax deduction on FD interest 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.