All About Section 80C

Section 80C is perhaps the most important section under income tax for taxpayers.

Majority of us save incidentally while trying to make the most of 80C.

Also,most of us invest in wrong products while investing under this section.

Therefore, it is of paramount importance to study what section 80C entails and which products are available under this section.

Below table shows available investment option under section 80C :

Investments Eligible Under Section 80C
PF & VPF & Previous Employer PF
Pension Schemes(80 CCC)
LIC
Life Insurance Premium Due
PPF
Post office Schemes
NSS
NSC
NSC Accrued Interest
ULIP
Equity Linked Plan (ELSS)
Home Loan Account Scheme
Housing Principal
Child Tuition Fee/Education Expenses
Infrastructure Bonds
Stamp Duty &Registration Charges
Tax Saving Fixed Deposits
Kisan Vikas Patra
Sukanya Samridhi Account
National Pension Scheme

Recommended:  http://www.oracleinvestor.com/tax/tax-savings-options-summary/

  • You may invest in any number of above products, however, the maximum exemption that you can claim for tax waiver is limited to INR 1,50,000/FY.
  • If your annual premium exceeds 120% of the sum assured on your policy, your deduction will be restricted to 10% of the sum assured.
  • The amount received on maturity will be fully taxable in case the premium paid in respect of the policy exceeds 10% of the sum assured in any of years will not get the tax benefit.

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