Invest ₹1.5 lakh under 80C, 80CCC and 80CCD ? Well, not exactly!

Income Tax Act allows tax exemptions under sections 80C,80CCC and 80CCD with an overall cap of ₹ 1 Lakh. But should you really set aside ₹ 1.5 Lakh for investing under these sections ?

Well not really, considering Provident Fund(PF) is included in these investment, you need to looking to invest ₹1,00,000 minus your early PF, which can be calculated using the Salary Calculator.  For example, if your monthly basic pay is 10,000, your yearly PF contributions would be ₹ 14,400/- . Hence you should be look at investing ₹ 85,600/-(1,00,000 – 14,400) as opposed to investing  full allowance of  ₹1,00,000/-.

  • Sections 80C covers PF,VPF, PPF, NSC, ELSS, Life Insurance Premiums , Home Loan and more.
  • Sections 80CCC covers certain pension schemes and
  • Sections 80CCD covers new pension scheme(NPS)