I have retired and my only source of income beyond the tax limit is from bank interest and mutual fund investments. Am I eligible for income tax benefit under Section 80C which I used to get when I was employed?- Debdatta Chattopadhyay
The income we earn is subject to income tax by the government and the rate of income tax is different for different income levels, and thus, the income tax that you pay depends on your total earnings in a given year and the tax slab that you fall in. Tax benefits under Section 80C are available only on savings and investments made in the list of investments that qualify for deductions under this section. So, if you invest in instruments such as PPF, NSC, 5-year bank deposits and tax planning funds besides others, you can continue to enjoy the benefits under Section 80C of the Income Tax Act.