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)|
|Life Insurance Premium Due|
|Post office Schemes|
|NSC Accrued Interest|
|Equity Linked Plan (ELSS)|
|Home Loan Account Scheme|
|Child Tuition Fee/Education Expenses|
|Stamp Duty &Registration Charges|
|Tax Saving Fixed Deposits|
|Kisan Vikas Patra|
|Sukanya Samridhi Account|
|National Pension Scheme|
- 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.