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HomePersonal FinanceITR Filing 80C: Attention! Five mistakes to avoid in claiming under 80C...

ITR Filing 80C: Attention! Five mistakes to avoid in claiming under 80C while filing income tax return, check here details

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Under 80C, taxpayers get the benefit of tax exemption on some of their expenses and investments. If you plan your investments well, you can claim a rebate of up to Rs 1.5 lakh per annum. In such a situation, while making a claim under it, taxpayers should avoid five mistakes.



The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 31st October, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th November, 2021 and 15th February, 2022. In such a situation, taxpayers must do the calculations related to their income, investments and savings before filing ITR. 80C is the most popular and preferred section of the Income Tax Act for taxpayers to save tax.

Actually, under 80C, taxpayers get the benefit of tax exemption on some of their expenses and investments. If you plan your investments well, you can claim a rebate of up to Rs 1.5 lakh per annum. In such a situation, while making a claim under it, taxpayers should avoid five mistakes.

Pay attention to the lockin period

Certain deductions under section 80C are covered under the lock-in period. FDs have a lock-in period of 5 years and Equity Linked Savings Schemes have a lock-in period of 3 years. If the taxpayer violates the rules of the lock-in period, then the income is taxed as the income of the taxpayer for that financial year.

Make sure to calculate tuition or school fees

If a taxpayer claims deduction for school or tuition fees, he/she has to first understand certain provisions. The taxpayer can claim the fees paid for full time education for a maximum of two children. Only the tuition fee portion of the complete fee can be claimed. Therefore, the fee expense must be calculated before making a claim.

Avoid Investing Too Much in Endowment Plans

Endowment plans are good for tax saving and investment. However, investing a large part of the earnings in it will not yield good returns. Therefore, to save more, invest in term plans, which are discounted.

Home loan repayment

But exemption… Taxpayers can claim repayment of any kind of home loan under 80C, but it needs to be understood that the principal amount of personal loan (loan taken from friends-relatives) is not covered under 80C. For claim, it is necessary to take loan from bank, cooperative bank, national housing bank, etc.

Claim on registration stamp duty

Stamp duty, enrollment fee and certain other expenses directly related to transfer of residential house property can be claimed under 80C. For commercial property, these expenses cannot be claimed under 80C.

Don’t invest money in a hurry

One should not invest in haste in the greed of saving tax. This increases the chances of making the wrong investment decision. So invest wisely and never invest just to save tax.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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