Savings play a vital role in the fast economic development of any country. To encourage savings, an incentive in the form of a deduction out of one’s taxable income has been allowed. To channelize those savings, various schemes have been framed and if the assesses deposits those savings in these approved saving schemes, a deduction shall be allowed.
Deduction u/s 80C shall be allowed only to following assessee :
A Hindu Undivided Family (HUF)
Rate of Deduction :
Total amount deposited in various approved savings schemes or ` 1,00,000 p.a. w.e. is less shall be allowed as deduction. This limit of ` 1,00,000 also includes the amount of deduction allowable to the assessee u/s 8OCCC and 8OCCD.