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Tax Deductions Under Sections 80C & 10(10D)

Under section 80C, individuals and Hindu Undivided Families can claim tax deductions of up to Rs. 1.5 lakh per year for investments and instruments such as insurance premiums, PF contributions, tuition fees, and more. This reduces their taxable income. Section 10(10D) provides a tax exemption for any sum received under a life insurance policy, including death benefits, maturity claims, and bonuses, with no upper limit on the exempt amount.

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6 views1 page

Tax Deductions Under Sections 80C & 10(10D)

Under section 80C, individuals and Hindu Undivided Families can claim tax deductions of up to Rs. 1.5 lakh per year for investments and instruments such as insurance premiums, PF contributions, tuition fees, and more. This reduces their taxable income. Section 10(10D) provides a tax exemption for any sum received under a life insurance policy, including death benefits, maturity claims, and bonuses, with no upper limit on the exempt amount.

Uploaded by

Avantika Saxena
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1.

Section 80C Tax Deduction


Under section 80C of the income tax, We are eligible for claiming deductions up to Rs. 1, 50,000 on
taxable income from tax-saving instruments and investments. An individual or Hindu Undivided Family
(HUF) is eligible to claim deductions under this section. This deduction is not available to partnerships,
companies and other corporate bodies. You have to claim this deduction in your income tax return (ITR)
while has to be filed by 31st July each year for individuals.

The amount you claim under this section is reduced from your gross total income for the purposes of
computing income tax.

For example, if your gross total income is Rs 10 lakh and you have claimed a deduction of Rs 1.5 lakh
under Section 80C, your taxable income becomes Rs 8.5 lakh.

2) Section 1010D

Section 10(10D) specializes in offering tax deductions on claims, i.e. death and maturity benefit, which
includes all forms of accrued bonuses against the respective life insurance policies. Tax deductions
under this section can be availed on all types of life insurance policy claims. There is no upper limit on
the claim.

As per Section 10(10D) of the Income Tax Act, 1961, any sum received under a Life Insurance Policy,
including the sum allocated by way of bonus on such policy is exempt from tax whether received from
India or any Foreign Company.

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