Exemption U/s 80C as per Income Tax Act |With Automated Income Tax Preparation Excel Based Software for the Andhra Pradesh State Employees for the F.Y.2021-22 as per Budget 2021


Section 80 C of the Income Tax Act,1961 deals with tax exemption. Section 80C reduces direct taxable income because section 80C reduces tax liability. Most people directly or indirectly enjoy the fruits of Section 80.

The maximum tax exemption is up to Rs 1.5 lakh. At present, a person who is less than 60 years of age and has an income of Rs 2.5 lakh or less is exempted from paying tax, but the exemption can be increased up to Rs 4 lakh through Section 80C. However, Section 80C also has a number of conditions. Tax exemptions provide an incentive for an individual to invest in various government projects to improve his or her financial situation.

What is tax exemption?

Tax exemptions help reduce taxable income; This reduces your overall tax liability and helps you save tax, however, you claim that depending on the type of tax deduction, the amount of deduction varies. In other words, it can be said that it is deducting tax liabilities or increasing exemptions. However, these may be subject to the provisions of the law.

The maximum benefit of the Income-tax Act

Provident Fund (PF): These include the Public Provident Fund (PPF), the Voluntary Provident Fund (VPF), and the Employee Provident Fund (EPF). Provident funds have a tax exemption of up to Rs 1.5 lakh in a single financial year

Tax Saving Fixed Deposits: Investments made under Tax-Saving Fixed Deposits such as 5 years post office deposits, 5 years tax-saving bank deposits, etc. may be entitled to a rebate of up to Rs 1.5 lakh under the 60s of Income Tax Act, 1961.

National Pension System: This is a postal saving scheme. This is for a fixed period of time (5 or 10 years). Investments made in NPS are eligible for tax exemption of Rs 1.5 lakh under section 80C, in addition to these, one can invest an additional Rs 50,000 under sub-section 80CCD (1B).

Sukanya Samriddhi Project: This is an important initiative of the government under the “Save Betty, Read Betty Campaign”, so the books under Sukanya Samridhi Project are exempt from tax under 80C of the Income Tax Act, 1919.

Senior Citizenship Savings Scheme (SCSS): Anyone over the age of 60 can avail of this scheme. Under this scheme, senior citizens have been exempted from tax up to Rs 1.5 lakh under Section 80S of the Indian Tax Act, 19191.

• Life Insurance Policy: Investments made in life insurance policies for you, your spouse, children are exempt from tax under 80C of the Income Tax Act, 1919. The maximum discount is 1.5 lakh rupees.

• Education: It is included in Section 80C of the Income Tax Act, 1961. Exemption from Higher Higher Education Fee Tax. Tuition fees may be for a person or his children. Pursuant to Act 19 of the Income Tax Act, children are exempted from any kind of tuition tax before or during admission or after admission.

https://taxguruindian.com/Income Tax Form 16 Part A&B

The maximum discount is 2.5 lakh rupees. It is considered as one of the most beneficial discounts as it helps parents to save money and it also promotes education. However, grant cuts are not the basis for discounts.

Investment for Wealth Building and Goals: All Equity Linked Savings Schemes (ELSS), Unit Linked Savings Schemes (ULSS), etc. can be used to avail the benefits of 60 sec of Income Tax Act 19191.

Certificate of National Conservation: Investments under this section are included in section 80C of the Income-tax Act, 1861.

• Home Loan: Under Section 80 C of the Income Tax Act, 1961, a person can avail tax exemption on home loans. It can provide relief in EMI payments etc.

https://taxguruindian.com/Salary Structure
https://taxguruindian.com/Income Tax Computed Sheet

Feature of this Excel Utility:-

1) After enter employee’s data this software calculates the taxable Income Automatically.

2)  In this Excel Utility have a Salary Structure as per the Andhra Pradesh State Employees Salary Pattern.

3) Automated Income Tax Form 16 Part A&B for the F.Y.2021-22

4) Automated Income Tax Form 16 Part B for the F.Y.2021-22

5) Automated Tax Computed Sheet

6) Automated Income Tax House Rent Exemption Calculation U/s 10(13A)