Hey fishes, can someone tell me how the 80c bracket works, i know i can get exempt upto 1.5lakh under it, what i wanna know is does PF comes under it or not? For example if my yearly pf deduction is 20k and VPF is 10k so now will i still be able to show investment of 1.5lakh under 80c apart from PF and VPF or i'll be able to get exemption on only 1.2 lakh( 1.5lakh-30k= 1.2lakh)?

Thank you in advance!!

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1.2 L only will be available for making remaining investment non taxable. Since 30k from employee's share will be counted in 1.5L. Employer's PF share is fully non taxable and no need to worry about at all in the first place.

likehelpful

Thank you!

Hi,
80C already includes PF/VPF, hence, while planning your investments, please be cognisant of this fact. What’s above and beyond the 1.5L is the additional 50K we get to claim from 80 CCD (NPS)

likehelpful

Can you please shed some light on 80CCD1 and 80CCD1B i have read somewhere that combining both of them i can invest upto 1.5lakh for tax exemption.

You will be able to show 1.5 lakh over and above PF i guess. The PF amount is not counted as taxable income to begin with!

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Have you ever tried this out? Previously i was not even in the tax bracket so I am a total noob on this one. I am searching on various paltforms but only getting ambiguous answers.

Yep you said the answer... U can only show tax for 1.2L under 80c as ur PF filled up 30k for the 1.5L cap.
If ur package is around 7.5L(fixed) then with 80c(PF + PPF/MF/LIC) and HRA u can escape from the tax bracket... If VP comes in to picture then ur screwed...need to pay 20-30k tax for that year

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