4 type expenses that can help you save tax under section 80C

You can save tax under section 80C by investing in notified schemes such as PPF (Public Provident Fund), ELSS (Equity-linked saving scheme) or insurance.

If you have incurred any of the below mentioned expenses in the current financial year i.e. FY 2018-19, then you can claim deduction for it up to a maximum of Rs 1.5 lakh.
1. Tuition fees of children
According to the Income Tax Act, any tuition fees paid whether at the time of admission or thereafter to any university, college, school or other educational institution is eligible for this deduction.
However, only fees paid for studies pursued full time can be claimed as a deduction to save tax under this section.

This also includes fees paid for any play school activities, pre-nursery and nursery classes.

One must remember that this benefit is restricted to the children only. Any fees payment made for education of yourself or spouse is not available.

2. Home Loan Principal Repayment
The EMI paid by you every month has two components: Principal and interest.

The certificate will show how much of the total EMI paid in a year was repayment of the principal amount borrowed.

You can get deduction upto 1.5 Lakh for principal repayment amount  under section 80C.


3. Certain payments for the purchase/construction of residential house property

According to the Income Tax Act, any stamp duty, registration fee and other expenses incurred for the purpose of buying a house is eligible for deduction from gross total income in the financial year in which these expenses are incurred. 
4. Payment to development authority, housing board or other authority for the purchase of house
If you have bought a house under the instalment finance scheme from a development authority such as the Delhi Development Authority (DDA) and are paying the instalment to DDA then any amount paid towards principal repayment can also be claimed as deduction u/s 80C .

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