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Tax deductions under section 80c

  • Section 80c of the Income tax act allows tax deductions upto 1.5 lacs per year and the investment options are given below:
  • Public Provident Fund or PPF which has locking period of 15 years.
  • Employee Provident Fund or EPF which also has locking period of 15 years.
  • Bank FD which is under Maha tax bachat scheme. The locking period is minimum 5 years.
  • National pension scheme which can save upto 1.5 lacs per year and an additional 50000 under 80CCD(1B).
  • National Savings Certificates which can be bought from post offices and the locking period is 5 years.
  • Sukanya Samriddhi Yojana also offers tax deduction and it matures after 21 years of its opening or till the marriage of the girl after she turns 18.
  • Children's tuition fees which are paid to any school, college, university or educational institute situated in India are tax deductible.
  • Repayment of the principal of a home loan is also tax deductible.
  • Life insurance allows tax exemption under 80c and health insurance allows it under 80d.

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