SKIPS ANVESHAN VOL I Issue I September 2019 (ISSN No. 2582-4236) 1 Examining the perceptions of the tax payers with respect to Deduction under Section 80C to 80U of Income tax Act in Ahmedabad City. Dr J.A. Sarvaiya Principal, Sabarmati Arts & Commerce College, Ahmedabad-380005 Email - principaljs@yahoo.com Dr Rajesh P Ganatra Assistant Professor, Sabarmati Arts & Commerce College, Ahmedabad-380005 Email- raj1418@gmail.com Abstract The avid goal of every taxpayer is to minimize his or her tax liability. Tax Planning involves planning in order to avail all exemptions, deductions and rebates provided in Act. The Income Tax law itself provides for various methods for Tax Planning. Generally it is provided under exemptions u/s 10, deductions u/s 80C to 80U and rebates and reliefs. This research paper aims to examine the behavioral patterns and the perceptions of the taxpayers over the different deduction available under sections from 80C-80U of Income tax Act such as PPF, LIC premium, PF, FD’s, National Pension Scheme, Rajiv Gandhi Equity Linked Savings Scheme, Mediclaim, Interest on home loan, Interest on Education loan, Donations, Rent, Interest on Savings Account etc. Further the researcher also tries to examine whether there is a significant difference in perception of taxpayers with respect to deductions U/s 80C-80U relative to their demographic factors. Key Words: Ahmedabad City, Deduction U/S 80C-80U, Demographic Factors, Perceptions, Tax Payers. Introduction Investment and taxes are the two important facets of an economy, on one hand the taxes constitute an important component for the revenue generation of the exchequer and the other hand investment in tax saving schemes reduce the tax liability of an assessee however an important wheel of economic development is. Tax is one of the important factors that should be taken into consideration. An individual invests or postpones current consumption only in response to a rate of return which may be suitably adjusted for inflation and risk. Investment decisions are premised on an important assumption that investors prefer certainty. The Investors would prefer to invest in instruments which save them tax and provide good returns. Taxes