Finance Minister Nirmala Sitharaman will present the Union Budget 2023 on February 1, 2023. This will be the fifth Budget presentation by Sitharaman, and it will mark the Modi government s last before the Lok Sabha Elections 2024. New Income Tax Regime: Ahead of Budget 2023, Know Tax Slabs, Exemptions, Benefits and Disadvantages of Optional Tax Mechanism Introduced in 2020.
(Tax-savings are inclusive of cess at 4 per cent)
Alternatively, suppose your gross total income for FY 2020-21 is Rs 10.5 lakh. By claiming a deduction of Rs 1.5 lakh under section 80C, your net taxable income reduces to Rs 9 lakh. By claiming the deduction, you will now be in the 20% tax bracket instead of the 30% bracket.
5 popular investment avenues for tax deduction under Section 80C
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Commonly-availed tax-savers
One of the most common deductions available under the Income-tax Act, 1961 is section 80C. The deduction under 80C can be claimed only if an individual opts for the old/existing tax regime in a financial year. If he/she opts for the new concessional tax regime, then he/she will not be eligible to claim these deductions.