Main deduction of Section 80C for the Financial Year 2016-17 as per Finance Bill 2016-17.
Section 80C replaced the old Sec.88 and came into effect from 1st April 2006. The current maximum limit of Deduction under Section 80C is Rs.1,50,000 in a financial year. The earlier limit of Section 80C was Rs.1,00,000 up to FY 2014-15. Later on, it was increased to Rs.1,50,000 and same is continued.
Section 80C constitutes many investment options for tax savers. Hence, it is the top most choice for many. But many believe that only investments can be claimed for Deduction under Section 80C but the reality is some expenses like tuition fee or home loan are also part of such Deduction under Section 80C.
This section is available only for individuals and HUF only