Everyone's Favorite : 80C
This is by far most famous section in Income tax by most of us, because u/s 80C you can claim up to 1,00,000 as deductions. Here is the list of investments which can offer you these deductions under this section.
Following investment are covered under section 80C
1. Provident Fund / Employee Provident Fund
If your salaried person, your employer deducts EPF from your salary. All such contributions are counted towards 80C.
2. Public Provident Fund
You can open PPF account at post office or any national bank. All such contributions are counted towards 80C.
3. National Saving Certificate
You can purchase NSC certificates at Post Office. NSC is for either 5 or 10 years. One important thing you need to note here is that, the interest accrued every year is taxable but such interest is deemed to be re-invested, so is eligible for deduction under 80C in the year in which you got the interest.
4. Five Year Bank Fixed Deposits
All 5 year fixed deposits are eligible under this deduction. These FDs have a lock in period of 5 years. You can get these Fixed Deposits from any bank of your choice.
5. Five Year Post Office Time Deposit (POTD) Scheme
Similar to Bank fixed deposits, POTDs with duration more than 5 years are eligible under this section.
6. National Housing Bank Suvriddhi
National Housing Bank deposits term deposits with duration of more than 5 years are eligible for 80C deduction.
7. Equity Linked Savings Scheme (ELSS)
Mutual fund contributions towards ELSS mutual funds are tax exempted under this section. There is a lock in period of 3 years for these mutual funds. This one is one of the best options if you want to stay invested in market and still want to get tax benefits.
8. Life Insurance Premium
Premium paid towards insurance for yourself, spouse or children is covered in this section with a cap of 10% of Sum Assured.
9. Unit Linked Insurance Plan
Unit linked Insurance is the combination of Life Insurance and Equity Mutual Funds. You can purchase these from most of the life insurance providers.
10. Tuition Fees
Any amount paid towards tuition fee for the eduction of first two children is eligible under this section.
11. Home Loan Principal Payment
Amount paid towards your home loan Principal is covered under this section.
12. Stamp Duty & Registration Charges for home
If you have taken home loan this year, any amount paid towards registration of the property is covered under this section.
One important thing to note is that, using all the above investments you can get maximum of 1,00,000/- deduction only.
Following investment are covered under section 80C
1. Provident Fund / Employee Provident Fund
If your salaried person, your employer deducts EPF from your salary. All such contributions are counted towards 80C.
2. Public Provident Fund
You can open PPF account at post office or any national bank. All such contributions are counted towards 80C.
3. National Saving Certificate
You can purchase NSC certificates at Post Office. NSC is for either 5 or 10 years. One important thing you need to note here is that, the interest accrued every year is taxable but such interest is deemed to be re-invested, so is eligible for deduction under 80C in the year in which you got the interest.
4. Five Year Bank Fixed Deposits
All 5 year fixed deposits are eligible under this deduction. These FDs have a lock in period of 5 years. You can get these Fixed Deposits from any bank of your choice.
5. Five Year Post Office Time Deposit (POTD) Scheme
Similar to Bank fixed deposits, POTDs with duration more than 5 years are eligible under this section.
6. National Housing Bank Suvriddhi
National Housing Bank deposits term deposits with duration of more than 5 years are eligible for 80C deduction.
7. Equity Linked Savings Scheme (ELSS)
Mutual fund contributions towards ELSS mutual funds are tax exempted under this section. There is a lock in period of 3 years for these mutual funds. This one is one of the best options if you want to stay invested in market and still want to get tax benefits.
8. Life Insurance Premium
Premium paid towards insurance for yourself, spouse or children is covered in this section with a cap of 10% of Sum Assured.
9. Unit Linked Insurance Plan
Unit linked Insurance is the combination of Life Insurance and Equity Mutual Funds. You can purchase these from most of the life insurance providers.
10. Tuition Fees
Any amount paid towards tuition fee for the eduction of first two children is eligible under this section.
11. Home Loan Principal Payment
Amount paid towards your home loan Principal is covered under this section.
12. Stamp Duty & Registration Charges for home
If you have taken home loan this year, any amount paid towards registration of the property is covered under this section.
One important thing to note is that, using all the above investments you can get maximum of 1,00,000/- deduction only.
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