Section benefits
Section 80C consists of a list of investment options plus some areas of expenses which if the individual has completed during the year will enable them to get a deduction.
Residential status
The individual taxpayer can be either a resident in India or a non resident depending on the time period for which they have stayed at various places during the year. When it comes to the question of the use of the section and its benefit by a resident taxpayer then there is nothing to worry about because they can make the use of this. The question is what will happen to non residents. If one looks carefully at the words used in the section then it talks about an assessee who needs to be an individual or a Hindu Undivided Family. There is no restriction mentioned in terms of a resident and a non resident. This means that even a non resident can make use of this section and the benefits that come along with it and hence they can plan their investments accordingly.
Amount invested
The total benefit that the individual can make use of is Rs 1.5 lakh but one has to be careful in terms of which amounts would be counted for this particular purpose. In this sense the wordings once again become important and they say that the amount paid or deposited in the previous year should be aggregated and then the benefit can be claimed. This again makes it clear that there is no condition that is present in terms of where the money for the investment should come from. What is important is that the amount has to be deposited or paid for the various purposes during the year. As long as the individual is able to complete this requirement then they will be able to get the benefit of the deduction. This is important as they need to be careful to plan the investments in such a manner that they fall into the previous year for which the benefit is to be claimed.
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