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. 1) Life Insurance Premiums Your Life Insurance Premiums are Tax Deductible under Section 80C.

2) 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. 3) 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. 4) Public Provident Fund (PPF) The Minimum and Maximum limits of investing in PPF in any financial year are Rs.500Rs.70,000. And this entire amount comes under Section 80C..

5) 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 wont be anymore come under Section 80C. 6) 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. 7) Stamp Duty for Buying a Home Yes. Many people dont know this. But this comes under Sec 80c Deductions. 8) NSC National Savings Certificate This is also one of the best tax saving instrument in India after PPF and ELSS. 9) 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. 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 childs education are also Tax Deductible under Section 80c.