Top 13 Section 80C Deductions

Top 13 Section 80C Deductions

Section 80C is the most popular tax saving law in India. No other tax law in India gets this much attention. Under Section 80C, you can deduct up to Rs.1 Lakh annually by investing your money in different things.

So Here are the various Section 80C deductions.

01) Provident Fund (PF) -

If you are the salaried Individual than every month some amount of your salary goes towards PF. And this PF comes under Section 80C deductions.

02) VPF – Voluntary Provident Fund -

If you increase your PF contribution over and above the statutory limit (as deducted compulsorily by your employer), even this amount qualifies for deduction under section 80C.

03) Public Provident Fund (PPF) -

The Minimum and Maximum limits of investing in PPF in any financial year are Rs.500-Rs.70,000. And this entire amount comes under Section 80C.

PPF is India’s best savings scheme which falls under Sec 80C Deductions.

04) Life Insurance Premiums -

Well, yes. Your Life Insurance Premiums are also Tax Deductible under Section 80C.

05) ELSS – Equity Linked Savings Schemes -

After PPF, ELSS tax saving mutual funds are also the best known tax saving instruments. However, after implementation of Direct Tax Code (DTC), ELSS will be out of this list….

Thus, After April 2012, ELSS won’t be anymore come under Section 80C.

06) Home Loan Principal Payment -

Home Loan Tax Savings come under two laws.

Principal payment comes under Section 80c. While,

Interest payment comes under Section 24b.

07) Stamp Duty for Buying a Home -

Well, Yes. many people don’t know this. But this comes under Sec 80c Deductions.

08) NSC – National Savings Certificate -

This is also one of the best tax saving instrument in India after PPF and ELSS.

09) Infrastructure Bonds -

Well, these bonds also comes under Sec 80c. However, according to Section 80CCF, you can save up to Rs.20,000 more which is beyond the limit of Rs.1 lakh from Sec 80c. L&T, IFCI and IDFC have recently issued their own infra bonds which fall under Section 80CCF.

10) Bank 5 Years Fixed Deposits -

Any Bank fixed deposit having a maturity period of 5 years come under Section 80C Deductions.

11) Senior Citizen Savings Scheme -

This is a post office savings scheme for people above the age of 65 years.

12) Post Office Time Deposit Account -

13) Child Education Expense -

The Education and Tuition fees of your child’s education are also Tax Deductible under Section 80c.