Deductions under Section 80C

Posted on Pavan Talreja

Deductions under Section 80C

Section 80C of the Income Tax Act allows certain investments and expenditure to be tax-exempt.  One must plan investments well and spread it out across the various instruments specified under this section to avail maximum tax benefit.

The deduction under section 80C is available only to an individual or HUF. The maximum permissible deduction under section 80C is Rs.1,50,000/-. The following are the investments/contributions eligible for deduction –

  1. Premium paid in respect of Life Insurance policy
  2. Premium paid in respect of a contract for deferred annuity
  3. Any sum deducted from the salary payable of a Government employee for securing a        deferred annuity.
  4. Contribution to Statutory Provident Fund / Public Provident Fund / Recognised Provident           Fund
  5. Contribution to approved Superannuation Fund
  6. Any sum paid or deposited in Sukanya Samridhi Account:-

Any sum paid or deposited during the previous year in the said Scheme, by an individual in the name of –

  1. The individual himself or herself
  2. Any girl child of the individual; or
  3. Any girl child for whom such individual is the legal guardian
  1. Subscription to National Savings Certificates VIII
  2. Contribution in Unit-linked Insurance Plan 1971
  3. Contribution in Unit-linked Insurance Plan of LIC Mutual Fund
  4. Contribution to approved annuity plan of LIC
  5. Subscription towards notified units of mutual fund or UTI
  6. Contribution to notified pension fund set up by mutual fund or UTI
  7. Contribution to National Housing Bank (Tax Saving) Term Deposit Scheme,2008
  8. Subscription to notified deposit scheme
  9. Payment of tuition fees to any university, college, school or other educational institutions within India for full-time education for maximum 2 children
  10. Repayment of housing loan including stamp duty, registration fee and other expenses
  11. Subscription to certain equity shares or debentures
  12. Subscription to certain units of mutual fund
  13. Investment in Five Year Term Deposit
  14. Subscription to notified bonds issued by NABARD
  15. Investment in five year Post Office time deposit
  16. Deposit in Senior Citizens Savings Scheme Rules, 2004

– Contributed by Sateesh Kumar Puttha