Under Form 80C taxpayers get tax exemption benefits on their investments and expenses. If you carefully note down your investment options then you can get an annual rebate of up to Rs 1.5 lakh per annum. But taxpayers make common mistakes while filling their Form 80C which affects their refunds during assessments and refund process. 80C is most popular form that is used by taxpayers to save them from giving more tax to the government from their income.
Lockin Period Of Investments Are Important
Several investment options have a lockin period like FDs have 5 years, Equity Linked Saving Schemes have 3 years and more. If you have invested in such schemes and have taken your money before the lockin period then you will be taxed for the income generated from the investment.
Calculate Tuition Fees Correctly
As a taxpayer you should know that you can claim tax return on tuition fees for a maximum of two children. You should also note that when you submit fees of schools and colleges the bill is divided in portions like tuition fee, lab fee, library fee and more. You can claim refund only on tuition fee and not complete fee. So, calculate the tuition fee correctly while filing Form 80C.
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Home Loan Repayment
Taxpayers can get tax rebate if they are paying their home loan. But you should note that you will not get tax benefits if you are taking personal loan from friends or relatives. You need to take loan from a bank, national housing bank or cooperative bank to file return under Form 80C.
Claim On Registration Stamp Duty
You can get income tax return not only on home loans but also on stamp duty, enrollment fee and other expenses that come while transfer of residential house property. You cannot claim income tax refund on commercial property.
Tax saving should be strategically planned but you should not invest only in tax saving funds because the returns are lower than other investment options. Do not hurry in investing your hard earned money and always do adequate research. Take professional help if you are confused and clueless.