What tax benefits can I claim under Section 80C if I invest in tax saving funds?
Section 80C allows a maximum deduction of ₹1,50,000 from your taxable income. However, the total tax saving depends on your tax bracket. Refer to the table below to know how much you can save based on your tax bracket:
| Example 1 | Example 2 | |
| Income | ₹12,00,000 | ₹8,50,000 |
| Tax bracket | 30% | 20% |
| 80C deduction claimed | ₹1,50,000 | ₹1,50,000 |
| Tax as per bracket | ₹45,000 (1,50,000 x 30% tax rate) | ₹30,000(1,50,000 x 20% tax rate) |
| Cess on Income Tax (4%) | ₹1,800 (45,000 x 4% cess) | ₹1,200 (30,000 x 4% cess) |
| Total tax saved | ₹46,800 | ₹31,200 |
Note: The government has imposed a cess of 4% for FY 2019-20 and FY 2020-21.
Learn more about the benefits of investing in tax saving funds.
