Tax saving options under section 80C

Section 80C Deductions

 

 

 

 

 

 

 

 

 

 

 

 

 

Section 80C of the Income Tax Act, allows certain investments and expenditure to be tax-exempt. The total limit under this section is Rs. 100,000 (Rupees One lac) which can be any combination of the below:

• Contribution to Provident Fund or Public Provident Fund
• Payment of life insurance premium
• Investment in pension Plans
• Investment in Equity Linked Savings schemes (ELSS) of mutual funds
• Investment in specified government infrastructure bonds
• Investment in National Savings Certificates (interest of past NSCs is reinvested every year and can be added to the Section 80 limit)
• Payments towards principal repayment of housing loans.Also any registration fee or stamp duty paid.
• Payments towards tuition fees for children to any school or college or university or similar institution. (Only for 2 children)or towards coaching fee of various competitive exams.

Post office investments The investment can be from any source and not necessarily from income chargeable to tax.